Inadequate government resources, political instability, terrorist activity and corruption drove an overall increase in supply chain disruption over the last year. This is according to a new report from BSI.
The Global Supply Chain Intelligence Report identifies an overall increase in cargo theft, largely due to inadequate government resources and personnel shortages leaving shipments open to theft and stowaways.
According to data recorded by BSI the top commodities stolen globally were:
- Food and beverages
- Consumer goods
- Electronics
- Alcohol and tobacco
- Apparel and footwear.
BSI continues to note the significant risk of cargo theft in the pharmaceutical industry, with sophisticated thieves targeting these valuable products for hijackings in countries throughout the world. BSI data reveals a high median loss value and higher top-end losses given the large accumulation of pharmaceuticals in warehouses and tractor-trailers. BSI estimates that $1.07 billion of pharmaceutical products were lost in 2017 due to cargo theft.
The report finds that while global supply chains face a diverse range of risks, the factors are common: inadequate government resources, political instability, terrorist activity and corruption.
Jim Yarbrough, Global Intelligence Program Manager at BSI said: “This year’s annual review paints a worrying picture of supply chain disruption across the globe, which can impact the resilience of an organization. Companies doing business across borders find themselves facing an increasingly wide range of challenges to their supply chain, from human rights issues to natural disasters and terrorist attacks. The number of cargo thefts is a serious concern for suppliers across the globe, as groups of organized criminals find new ways to disrupt cargo transit routes. While these issues directly affect a company’s bottom line they also pose a serious risk to a company’s hard-earned reputation.”
The report provides an overview of the top supply chain threats and trends by region to help organizations increase their visibility and understanding of potential exposures within the supply chain.
