Without logistics most supply chains would grind to a halt, as the world discovered during the pandemic.
As we emerge into more normal trading conditions, businesses across industry are looking to logistics providers to help them improve and optimize how they move and store goods between their supply chain nodes.
Meanwhile, logistics companies face their own supply chain challenges, including workforce issues, rising wage demands, global geopolitical and trade tensions and pressure to decarbonize transportation.
To find out how the sector is navigating this changing landscape, we surveyed 100 risk and supply chain leaders, from freight forwarders to shipping lines, airfreight operators and trucking companies.
How do they see the supply chain landscape? How are they building resilience? What are the main challenges and risks they face? And what will the supply chains of the future look like?
Logistics is at the core of every industry’s supply chain. That means the sector’s risks are multiplied.
From cyber-attacks to extreme weather, firms need to worry not only about their own operations, but also the knock-on impact on their customers and how that might rebound on them.
63% said losses related to the supply chain had been higher or much higher than expected over the last two years.
85% of businesses said they have made at least some improvements in their approach to supply chain management in response to the pandemic.
77% cited a lack of insurance solutions among the greatest challenges to addressing their risks over the next three to five years.
Logistics companies see supply chain risk from all angles. They need to manage not only their own risks but those of the companies they work for.
That’s not an easy balance to strike.
These challenges look set to grow as the risk of supply chain disruption stays high and customers demand more, both in terms of service delivery, sustainability and contractual obligations.
“Wider external factors, from geopolitics to cyber security increase the need for careful risk management.”
Charles W. McCammon | National Team Leader – Marine Risk Consulting and Claims Advocacy Group
Wider external factors, from geopolitics to cyber security increase the need for careful risk management.
Our survey shows that businesses are working to overcome problems and considering a range of strategies to increase resilience.
But they’re hampered by a lack of appropriate insurance solutions and difficulty getting hold of enough accurate data to manage their risks.
Working more closely with customers and partners can help companies understand their supply chains better and address these risks.
Diagnostic mapping and monitoring tools and analytics can help to visualize, quantify and assess risks across the chain and in specific locations.
WTW has an experienced team of experts with the tools and competencies to help clients understand their supply chain vulnerabilities and align their operations to reduce financial risk.
We can also help you manage and transfer risks for both property-related and pure economic losses, helping you build greater resilience against future shocks.
To learn more, download your free survey report by completing the short form at the top of this page.
