LEADERSHIP
A video overview of the FM Global Resilience Index EUROPEAN COMPANIES ARE becoming increasingly dependent on the emerging economies for production, new facilities and customers. According to McKinsey Global Institute, by 2025, nearly half of the Fortune Global 500 companies are likely to be based in developing countries – up from only five percent in 1990 and 26 percent in 2013. It is this migration to developing countries that makes supply chain management increasingly important for multinational companies today. Emerging markets Supply chain risk is a major threat to 16
December 2015
business continuity. Disruption can reduce a company’s revenue, cut into market share, inflate costs, or threaten production and distribution. With this in mind, European companies should follow these three steps to supply chain resiliency: 1. Identifying suppliers Identifying critical suppliers is the first step towards understanding your exposure to supply chain risk. Your company may have only a few suppliers or - like some companies - hundreds or even thousands. Your company may also be the supplier in another company’s supply chain. How