BSI unveiled its annual Supply Chain Risk Insights Report identifying key global trends in 2022. The report indicates that thefts from hijacking fell as a proportion of cargo theft from 24.4% to 17.0% in 2022. Theft from facilities now accounts for more than a quarter of total thefts, increasing from 24.2% to 26.0%. Food and beverages remain the most stolen commodity, growing considerably in 2022 by 2.8%. Automotive and fuel thefts are also up, and electronics, agriculture, and construction theft have fallen. Although hijacking has also fallen as a proportion of cargo theft, it continues to exert a real impact on global supply chains. Food, pharmaceuticals, and construction materials were affected the most.
The realities of war and COVID-19 shutdowns, long-term shortages of crucial manufacturing components, and inflation have governments reacting to global supply chains and their national interests. New legislation such as the CHIPS Act, the Bipartisan Infrastructure Law in the U.S., and increased GPDR regulations across the EU are all placing greater accountability on suppliers and purchasers. Government intervention includes bolstering domestic supply chains, reducing carbon emissions, and enhancing governance.
The report identifies six imperatives that organizations will need to address, including:
- Monitoring rapidly changing regulatory agendas
- Having a strong buy-in from top-level leadership
- Address digital risk—not one organization has solved this threat
- Invest in tools and technology such as data analysis, IoT, cloud computing, information security, and predictive analysis
- Be aware of the different, unique challenges facing each sector’s supply chain
- Data, the metaverse, and cybersecurity will differentiate organizations’ approaches to building a solid supply chain
According to Susan Taylor Martin, Chief Executive of the British Standards Institution (BSI). “Given the turbulence of the last twelve months, 2023 will be an important watershed for many organizations – with those that successfully manage their supply chain risks being more likely to thrive.”
Jim Yarbrough, Global Intelligence Program Manager at BSI, said: “…Without intervention, businesses will see dramatic impacts on their bottom line, meaning that discussing supply chain issues at the C-suite level can help to ensure investments are funneled to suppliers, building resilience to threats and supporting financial sustainability.”