Chaos currently taking place at England’s ports has caused ‘significant damage’ to Honda’s supply chain, according to data from research company Russell Group.
Despite resuming production at its Swindon plant, Honda struggled to source key parts of its “just-in-time” and “just-in-sequence” automotive supply chain.
Russell Group CEO Suki Basi said: “The Honda disruption highlights how vulnerable “just-in-time” supply chains are under strain in a connected economy.
“The chaos at all the major British ports is a real-time example of ‘Connected Trading Risk Exposure’.
“The disruption at the port creates ripple effects across the economy, from supply chain disruption for organisations, which ultimately feed into potentially higher prices for UK consumers”.
“While the current pandemic has rightly forced many organisations to reassess their current risk management techniques, these figures, in our view, show that any effective risk mitigation plan needs to have a Connected Trading Risk Exposure strategy at the heart of it.
“The good news is that the data is available, measurable and actionable, which is a message that is being understood by Russell’s existing clients across the world of (re)insurance as well as growing numbers of corporate working group partners and brands.”
