While Dangers Remain, Supply Chain Risk Recorded at 18-Month Low
By: CIPS August 20, 2014
Global supply chain risk reached an 18-month low in Q2 2014, decreasing for three consecutive quarters for the first time since the 2008 financial crisis, according to the Chartered Institute of Purchasing & Supply's (CIPS) latest CIPS Risk Index (CRI).
Yet with the Ebola outbreak in West Africa, wars in the Middle East and sanctions on Russia amid broader instability in Eastern Europe, there are concerns that world events will conspire to reverse the improvement in supply chain risk in Q3 and undermine the global economic recovery.
The Index, which tracks the effect of economic, political and social factors on the security of global supply chains, has fallen from an all-time high of 82.4 in Q3 2013 to 78.1 in Q2 2014. The fall is in large part due to the German industrial recovery with the country’s exports shoring up supply chains across Europe and beyond.