A Supply Chain Risk Map for 2007

Supply Chain Digest recently summarized Aon’s 2007 supply chain risk map. The map highlights potential areas of supply risk in 2007 due to political, military, and economic issues. According to SCD, it "cites such Asian countries as China, South Korea, the Philippines, Vietnam, Indonesia, India and Cambodia as having significant supply chain vulnerability in 2006, while Thailand, Singapore, and Malaysia do not."

Specifically, Aon suggests that disruptions in areas such as the "Bosporus Strait, Malacca Strait, Panama Canal & Suez Canal" could come from terrorist attacks or maritime piracy. While China faces potential supply chain disruptions due to "bird flu outbreak" and a "financial crisis causing supplier insolvency". And North American and London might face a trade backlash and "restrictions on outsourcing." It's never comforting to read predictions like this, but staying ahead of the supply risk game requires forecasting -- and planning for -- such possibilities.

- Jason Busch