Global supply chain resilience nears an all-time low

Risk auditor, Achilles has reported a fall in its index of global supply chain resilience to marginally above its high-risk threshold and it has forecast a first-ever fall to below the threshold by the end of March.

Author of the report, and chief product officer at Achilles,Katie Tamblin, said: “The Achilles Supply Chain Resilience Index has, throughout the whole of 2021, flagged commodity prices and energy supply as bellwethers for global supply chains. Pummelled by so many challenges over the past two years, we now face a critical tipping point that could have both supply and cost ramifications rippling through industrial and consumer markets for years to come.”

The Achilles Supply Chain Resilience Index for t October – December 2021 reports a score of 44.9 – less than five points higher than the 40% high-risk threshold. According to the report. the resilience of global supply chains “had already fallen significantly for the 12 months prior to the conflict in Ukraine, raising fresh concerns over prolonged material shortages and price rises.”

The report highlights supply chain issues with specialist metals affecting energy production, electric vehicle and power storage battery manufacture as well as shortages in oil and gas.