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International supply chain risk hits peak in CIPS Index

Repeated natural disasters have revealed stark regional differences in the resilience of global supply chains, according to the latest CIPS Risk Index. 

The level of international supply chain risk grew from 79.3 in the last quarter of 2015 to 79.8 in the first quarter of 2016. This is the joint highest recorded level of supply chain risk in a first quarter since the index, produced by Dun & Bradstreet, was launched in 1995.

Levels of risk grew in North Africa, Western Europe, Asia and Latin America.

Despite this, natural disasters including a 6.4-magnitude earthquake in Taiwan occurred (a 5.8 magnitude quake in Japan fell outside the quarter) failed to have a major impact on world supply chains.

The index report explained: “Building regulations designed to prevent widespread infrastructure damage after the catastrophic 1999 earthquake appear to have made supply chains in the region far more resilient.”

It added though, that the collapse of the residential Weiguan Golden Dragon complex in Taiwan was a reminder that regulations are not consistently observed.

Please click here to read the full article from CIPS