Insights from Sphera Supply Chain Risk Report 2024

Exploring the Top Supply Chain Risks of 2023 from Sphera Supply Chain Risk Report 2024

Sphera proudly releases its first-ever Supply Chain Risk Report, a thorough exploration of the significant threats that impacted global enterprises and their suppliers throughout 2023. The report draws on data from Sphera’s Supply Chain Risk Management software, leveraging its AI-powered Risk Intelligence component for real-time event monitoring. By examining the origins and impacts of these risks and incorporating real-world examples, the report offers a detailed understanding of how supply chain risks evolve and affect businesses. Key findings from January to November 2023 reveal significant shifts in the risk landscape, including increased supplier challenges due to economic factors, a sharp escalation in cyber threats, enhanced impacts from natural disasters, rising pressures from ESG initiatives, and the effects of geopolitical tensions on sourcing strategies.

Key Highlights of the Sphera Supply Chain Risk Report 2024

• Economic Trends stressed the financial health of suppliers
• Cyber incidents grew in scope and frequency
• Natural hazard events hit supply chains hard
• ESG-Related risks continued to rise
• Exceptional circumstances challenged supply chains 

1. Economic Instabilities Strain Supplier Finances

In 2023, economic fluctuations put significant pressure on suppliers' financial health. With inflation and rising interest rates impacting economic cycles, 36% of the financial risk notifications highlighted a concerning decline in revenue growth and financial stability.

Companies that leverage real-time monitoring available through Sphera Supply Chain Risk Management learn of breaking news ahead of the market. With ongoing monitoring available through Risk Intelligence, companies can recognize patterns and signals before situations become critical. The risk-aware company benefits from being the first to reallocate capacities at reasonable cost—a true competitive advantage even in a risky situation just like the U.S. Automotive Industry Strikes. 

2. The Rising Tide of Cyber Incidents

Cybersecurity challenges surged as incidents related to cyber threats grew by 62% over the last year. According to a 2023 IBM survey of over 550 organizations worldwide, the average cost of a data breach now stands at $4.45 million. These breaches not only cause operational delays and data loss but also lead to significant factory shutdowns. This underscores the critical need for enhanced cybersecurity protocols.

Organizations must proactively address cyber risks through a combination of technology and strategy.

By delivering timely alerts and critical updates, such as the MOVEit vulnerability, Sphera equips organizations with the necessary tools to anticipate risks and fortify their defenses. On May 31, Sphera Supply Chain Risk Management users were alerted to a “critical zero-day vulnerability” issued by Progress Software, the parent company of MOVEit. The company warned that a temporary gap in security had been discovered. In June 2023, the ransomware gang CLOP exploited a critical security vulnerability of a file-sharing solution, MOVEit Transfer. 

Discover More in the Full Report

While we've highlighted snapshots of the critical economic and cyber risks, Sphera's Supply Chain Risk Report 2024 covers even more ground. For detailed insights into natural hazards, ESG-related challenges, and other extraordinary circumstances that supply chains faced last year, download the full report. Understand the factors behind supply chain risk. Learn what you can do now to protect your supply chain and ensure business continuity.

      Download the full Sphera Supply Chain Risk Report 2024 here.

Sphera will be showcasing their solutions at the 2024 American Supply Chain Summit, taking place at the Hyatt Regency Dallas from April 30-May 1.

Visit them at booth 37 and see how they can help enhance your supply chain resilience

Register today at supplychainus.com