British Standards (BSI) has brought out its annual Supply Chain Risk Insights Report.
In terms of major trends, the report noted that thefts from hijacking have fallen as a proportion of cargo theft from 24.4 per cent to 17pc. These are now second to theft from facilities, which now account for more than a quarter of total thefts, having increased from 24.2pc to 26pc. Food and beverages remain the most commonly stolen commodity; and that increased considerably in 2022, increasing share by 2.8pc. The proportion of automotive and fuel thefts is also rising, whereas the proportion of electronics, agriculture and construction theft has fallen. While hijacking has also fallen as a proportion of cargo theft, BSI observed that this continues to exert a real impact on global supply chains – with food, pharmaceuticals and construction materials most affected.
Price inflation, made by Russia’s invasion of Ukraine, and an enduring legacy of covid-19-related shutdowns and the resulting prolonged shortage of key manufacturing components, has awakened governments to the importance of global supply chains to national interests, the report adds. This has led to the launch of new legislation such as the CHIPS Act and the Bipartisan Infrastructure Law in the United States, and increased GPDR regulations across the European Union, meaning greater accountability on suppliers and purchasers. Government intervention spans efforts to bolster domestic supply chains, reduce carbon emissions, and enhance governance.
Monitoring rapidly changing regulatory agendas is highlighted as one business imperative that decision-makers need to be aware of, the report adds. Susan Taylor Martin, Chief Executive of the British Standards Institution (BSI), said: “2022 saw volatility in global supply chains that many would never have expected in their lifetime.
“Successive crises, including a global pandemic followed by a war in Europe, have resulted in continued uncertainty on many fronts and have demonstrated to governments the benefit of ensuring a robust global supply chain.
“Given the turbulence of the last 12 months, 2023 will be an important watershed for many organisations – with those that successfully manage their supply chain risks being more likely to thrive.”
And Jim Yarbrough, Global Intelligence Program Manager at BSI, said: “The threats facing global supply chains vary from region to region and are distributed unequally, but in the face of rampant global price inflation, all countries ended 2022 in conditions more precarious than they were at the outset. Without intervention, businesses will see dramatic impacts on their bottom line, meaning that discussing supply chain issues at the C-suite level can help to ensure investments are funnelled to suppliers, building resilience to threats and supporting financial sustainability.”
You can download the report at the BSI website: https://www.bsigroup.com/en-GB/our-services/consulting/supply-chain-risk/supply-chain-reports/.
