By Gary Forger ·
January 17, 2022
The top 5 supply chain risks that global companies should prepare for in the next 12 months are detailed in the Everstream 2022 Risk Report from supply chain risk analytics provider Everstream Analytics.
“Pandemic shortages have revealed the global supply chain’s fragile interdependence, pushing companies in every industry toward comprehensive risk assessments and flexible response plans,” said Julie Gerdeman, Chief Executive Officer, Everstream Analytics. “We developed the Everstream 2022 Risk Report to provide advice and commentary on where to double down on risk mitigation efforts to keep supply chains stable.”
Below is a quick summary of the top five supply chain risks for 2022. For the expanded analysis, please download the full report here.
1. Worldwide Water Instability: Two thirds of the global population will face water shortages by 2025. A steady water supply is necessary for production and cooling equipment for pharmaceuticals, tech products, paper, garments, food processing, and other manufacturing industries.
2. Ocean Freight Bottlenecks: Facing record low-inventory levels, strong consumer demand, and ongoing COVID-19 impacts on logistics and workforces, the global ocean cargo industry will continue to suffer from port congestion and delays in 2022.
3. The Continuously Changing Workplace: As the Omicron variant of COVID-19 spreads across the world, the risk of infection will force companies to reassess how workplace safety and worker compensation to avoid the risk of long-term disruptions from industrial actions or outbreaks of disease.
4. Just-in-Time Shifts to Just-in Case: As the pandemic exposed flaws in “just in time” inventory systems, businesses have been exploring a shift to the “just in case” model, increasing buffer and safety stocks of critical components or best-selling products.
5. Increased Regulatory Scrutiny: Sustainability disclosure and reporting requirements for businesses continue to gain momentum amid scrutiny from governments, investors, and customers alike. Further regulations impacting global supply chains will likely be enacted in 2022.
January 17, 2022
About the Author
Gary Forger
Gary Forger is an editor at large for Modern Materials Handling. He is the former editorial director of Modern Materials Handling and senior vice president of MHI. He was also the editor of the Material Handling & Logistics U.S. Roadmap to 2030.
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