What will risk look like in the global supply chains of the future?

Insights to help you manage supply chain risks

Global supply chains were severely challenged during the pandemic and many businesses continue to experience disruption.

Meanwhile threats such as climate-related natural disasters, cyber-attacks and geopolitical instability continue to be a risk.

So how are businesses adapting and what are the main risks and opportunities looking forward?

WTW’s Global Supply Chain Survey asked 800 leading decision makers in a wide range of sectors from around the world.

Sectors surveyed include life science, semiconductors, food, beverage and agriculture, logistics, complex manufacturing, construction, energy and renewables.

Our global report and sector focussed reports, look at the key findings and themes that emerged, including industry views on:

• The impact of supply chain disruption
• Biggest risks and loss factors
• Upstream and downstream issues
• Approaches to supply chain risk management
• Climate and environmental factors

By downloading these reports, you’ll learn more about:

• The recent landscape of supply chain disruption
• How industry peers approach risk management and insurance
• How to identify your company’s risk exposures and the potential impact
• Taking steps towards managing and mitigating your risks.
• How to build resilience in your supply chain
• What the supply chains of the future will look like

Six steps to build your supply chain resilience

1. Make resilience a boardroom priority
   Embed it in strategic planning and execution, with structured governance to ensure that decisions are made and acted on at the correct level and the right time. This can be associated with existing business risk assessments.
2. Reduce reliance on single suppliers and locations
   Relying on a single source for critical components and raw materials creates vulnerability. So can using multiple suppliers in the same geographic area. Wherever possible, expand your network of suppliers and locations.
3. Develop closer working relationships
   Working more closely with suppliers, especially at tier 1, can help you gain a better understanding of the wider chain and increase resilience. Being a partner rather than just a client can help overcome barriers to disclosing proprietary data.
4. Reconsider just-in-time models
   Firms should develop a balance between just-in-time and just-in-case inventory levels to build contingency and strengthen physical assets to withstand climate events, and to provide support to distressed essential suppliers.
5. Aim for end-to-end visibility and transparency
   Supply chain mapping software tools allow businesses to get a more complete picture of all the relationships and flows in the supply chain, with live event-tracking to support proactive risk assessment and decision making.
6. Stress test your response
   Use scenario planning and simulation modeling, such as digital twinning, to quantify the impacts and mitigate the effects of risks. Also consider red teaming to get an outside challenger view on policies and processes.