Supply chain disruptions increased 88% year over year in 2021, says data released by risk management platform Resilinc, with disruptions related to supply shortages increasing 452%, the largest increase across all event types.
Although human health disruptions fell 68% year over year, 2021 saw the most factory fires ever recorded in a single year. The uptick is mainly due to gaps in regulatory and process execution as well as a shortage of skilled labor in warehouses, the report says.
The platform sent 491 alerts for supply shortages, including semiconductor chips, plastics, paper, and raw materials. Supply shortages are driving consolidations, mergers, and business sales as companies look for a quick cash boost or optimize the supply chain to best serve their customer base, the report says.
North America experienced the most supply chain disruptions (5,417), followed by Europe (2,838) and Asia (2,128). The most impacted industries were life sciences, healthcare, automotive, high tech, and general manufacturing, says Resilinc.
TOP 6 DISRUPTION EVENTS OF 2021
1. Factory fires
2. Mergers and acquisitions
3. Business sales
4. Factory disruptions
5. Leadership transitions
6. Supply shortages
Source: www.inboundlogistics.com
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