Supply chain risk trends for 2009

Filed in archive Market Overview on December 31, 2008

Shipping Digest has published the list of top 9 challenges in SCM in 2009. The list is highly affected by the economic downturn and within the risk management trends includes elements such as the following ones:

Supplier financial risk. As financial weakness permeates the marketplace, we already are witnessing a rise in supplier bankruptcies. Companies will need to reevaluate their supply chains to identify and support their key partners and reduce the number of potential "weak link" suppliers.

Volatility in energy, commodity, labor rates and currency exchange. Companies need to factor into their decisions potential fluctuations in future energy and commodity prices, as well as labor and currency exchange rates.

Unpredictable economic recoveries. Economic recoveries will likely be somewhat choppy across regions. The ability to quickly react to global shifts in demand will be critical for success.