Data shows global supply chain stabilising

BETWEEN JANUARY and June, Resilinc's EventWatchAI platform reported a total of 8,197 supply chain disruptions, with the Healthcare, High Tech, Automotive, Aerospace, and Food & Beverage industries bearing the brunt of the impact. Notably, the overall number of disruptions is slowing compared to previous years, with a mere 3% year-over-year increase, indicating the supply chain is stabilising.  

While the number of disruptions overall is stabilising, emerging financial risk areas experienced substantial year-over-year increases. Bankruptcies surged by 196%, Profit Warnings by 300%, and Corporate Restructuring by 125%.

Labour disruptions are also substantially higher this year - 136%. This includes company and site-level strikes, national strikes (such as the Labour Union strikes in France or the worker walkouts at Amazon in Coventry), and redundancies. Factory disruptions, including shutdowns, production halts, warnings/citations, and labour accidents, also increased by 30% year-over-year.

Financial and organisational risks such as Mergers & Acquisitions, Business Sale, and Leadership Transition remained among the top five disruptions but displayed signs of stabilisation and slight deceleration compared to the first half of 2022.  

Factory fires, although still the leading supply chain disruption with 1,642 notifications in the first half of 2023, experienced a nearly 20% decline year-over-year. This reduction can be attributed to the restoration of proper maintenance and procedures following the COVID-19 pandemic, as well as a decrease in production due to shifting consumer demands.

Of these reported disruptions, over half (53%) 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). 

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