Ensuring supply chain resiliency has become a critical focus area for many businesses worldwide. Also important is being able to identify which supplier regions pose a risk for disruption. Supply Chain Digital recently released a list of the top 10 national supply chains across the globe that are the least resilient, with the rankings based on research gathered and published in the 2016 FM Global Resilience Index. According to the company's website, this list measures a business's resilience against supply chain disruptions using nine main factors that influence an organization's vulnerability, which are divided into three categories: supply chain, economic and risk quality. Some of them include political risk, supplier quality, oil intensity and infrastructure.
For the second consecutive year, Supply Chain Digital reported, the research has found that Venezuela has the least resilient supply chain in the world, due in large part to high corruption rates and a weak infrastructure. Further hampering its appeal are the economic downturn it is currently experiencing, record-setting inflation levels and a susceptibility to harsh weather conditions and natural disasters.
Next on the list is the Dominican Republic, which is lacking particularly in the area of effective risk management strategies, followed by Kyrgz Republic. Both countries suffer from poor rankings on the Corruption Perceptions Index, or CPI.
Also included in the top 10 are Ukraine, Egypt, Algeria, Jamaica and Honduras. However, Supply Chain Digital noted that Mauritania is a country that supply chain managers want to pay particular attention to. Coming in at number five, the nation suffers from issues with its infrastructure and is riddled with poverty. Furthermore, the source said, part of what contributed to FM Global's weak ranking of it was that its local suppliers are of low quality.