Experts from Cranfield’s Centre for Logistics and Supply Chain Management have analysed data supplied by Dun & Bradstreet, drawing conclusions from around 600,000 anonymous transactions between European buyers and their suppliers located in more than 150 countries worldwide.
The report looks at four key metrics (Supplier Criticality, Supplier Financial Risk, Global Sourcing Risk and Foreign Exchange risk) to assess supply chain risk and provide businesses with a view of trends within their industry sector, and across the wider economy. The focus industry sectors are Construction, Manufacturing, Retail, Transportation and Wholesale.
By analysing trends by sector, the report highlights areas for monitoring and consideration in procurement decisions.
Key highlights: Q1 2018
The construction sector reduced its overall supply chain risk in Q1 2018, while transportation saw increased risk across all four metrics measured
Overall, 10% more buyer relationships were with suppliers located in high-risk countries than in the previous quarter, with an 18% increase in the transportation sector
Dependency on key suppliers increased 3% in Q1 over Q4, marking a 10% increase in the past two quarters, with the retail sector scoring highest level of dependency at 75.2%
Supplier financial risk remained relatively stable across most industry sectors
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