News / Supply chain disruption cost $56bn last year - and there's more risk to come

The migrant crisis in Europe is just one of a series of supply chain risks © Radek Procyk

23/03/2016

New research from the British Standards Institute (BSI) has found that global supply chains gained a combined $56bn in extra costs last year, incurred by crime, extreme weather, terrorist threats and the migrant crisis that swept across Europe.

The true figures of cargo crime have been hard to come by. Supply security intelligence firm FreightWatch International (FWI) has said it is difficult to accurately assess, but recently concluded that truck theft in Europe amounted to €11.3bn in 2013. But the new ...

Comment on this article

You must be logged in to post a comment.

Sandy Montalbano
March 25, 2016 at 6:28 pm
Importers could avoid these issues by sourcing domestically. Sourcing locally minimizes production disruptions and keeps production lines running smoothly and efficiently. We recommend importers use a total cost of ownership (TCO) analysis to see if domestic sourcing makes sense for them.

The not-for-profit Reshoring Initiative’s free Total Cost of Ownership software helps corporations calculate the real P&L impact of reshoring or offshoring. In many cases, companies find that, although the production cost is lower offshore, the total cost is higher, making it a good economic decision to reshore manufacturing back to the U.S. http://www.reshorenow.org/TCO_Estimator.cfm

Log in to Reply