Top 5 Supply Chain Disruptions
New data from Resilinc highlights the top drivers of supply chain disruptions for the first half of 2022. From January through June, Resilinc’s EventWatchAI platform alerted its customers to an astounding 7,929 potential supply chain disruptions (a 46% YoY increase) with the life sciences, healthcare, high-tech, and automotive industries being most impacted.
The top five reported disruptions include:
1. Factory fires
2. Mergers & acquisitions
3. Business sale
4. Leadership transition
5. Factory disruption
Of these disruptions, 54% were impactful enough to trigger the creation of a WarRoom (virtual platforms in the Resilinc dashboard where customers and their suppliers communicate and collaborate to assess and resolve disruptions).
Factory fires ranked as the top disruption for the first half of the year, with the number of fires up 131% YoY. This year is on track to have the most factory fires ever reported, a trend driven by regulatory and process execution gaps, as well as a skilled labor shortage in warehouses.
The data also reveals that disruptions due to geopolitical events, most notably the Russia-Ukraine war, were up 521% YoY. Sanctions and production shutdowns are creating unprecedented commodity and raw material shortages; these will likely continue through the end of the year.
Geographically, North America experienced the most disruptions, accounting for 40%+ of the total alerts issued in the first six months of this year.