Long-held practices around supply chain resilience have been completely upended, according to a survey by BSI (British Standards), using its Supply Chain Risk Exposure Evaluation Network (SCREEN) tool.
Jim Yarbrough, Global Intelligence Program Manager at BSI. “As organisations begin the process of rebuilding their supply chains following the COVID-19 pandemic, BSI’s latest SCREEN data indicates that in addition to the virus, organisations face new and additional threats, underscoring the need for business continuity planning.”
When BSI published its annual Supply Chain Risk Insights Report at the beginning of March, the global business impact of COVID-19 was still in its initial stage. As BSI predicted, the outbreak has led to complex and varying responses by governments and businesses, wreaking havoc on supply chain continuity. BSI’s latest findings show that a rise in COVID-19 cases are leading global supply chain hubs such as Bangladesh and India to lock down, creating supply chain pinch points. This has resulted in delays to manufacturing and global shipping and could impact sectors such as agriculture. As virus outbreaks continue, a country-by-country approach to containing the virus is expected, which could increase temporary disruptions to supply chain movement, BSI says.
As for cargo theft, while there is an increase in theft of medical devices (such as PPE and ventilators; the items most associated with the COVID-19 pandemic), SCREEN also reported an increase in thefts of particular goods:
– Theft of consumer goods such as cleaning solutions have risen in Mexico;
– Alcohol and tobacco thefts have increased in South America;
– Food and beverage thefts continue to lead in Asia; and
– Electronics remain a top target in Africa and across the Middle East.
Stowaway incidents
In March, BSI found a high rate of incidents of stowaway incidents in Europe and the Americas, as migrants used trucking as the transport of choice to move across Europe and through the Americas. This trend continued throughout 2020, with weakened European economies forcing migrants to continue travelling to find work. In the Americas, SCREEN suggests that while the virus deterred some migration through borders, migrants continue to travel in a northern direction and while stowaway incidents involving cargo trucks continues, there is also been an uptick in rail incidents.
Trafficking
In March, BSI highlighted an expected rise in security challenges and disruptions that trafficking would create within the Americas. SCREEN noted a particular increase in labor trafficking with Asia and the Middle East, as well. BSI expects this trend to increase, as loss of livelihood puts pressure on families to consider other means for generating income. Visit www.bsigroup.com/supplychain.
