The Impact of Globalization on Supply Chain Networks

The Accenture survey categorized risk in global supply chains, as shown in Table 6-1, and asked respondents to indicate the factors that affected them. More than a third of the respondents were affected by natural disasters, volatility of fuel prices, and the performance of supply chain partners. 

Crude oil spot price and exchange rate fluctuations in 2008 illustrate the extreme volatility that global supply chains must deal with. Crude started 2008 at about 90 per barrel, peaked in July at more than 140 per barrel, and plummeted to below 40 per barrel in December. The euro started 2008 at about 1.47, peaked in July at almost 1.60, dropped to about 1.25 at the end of October, and then rose back to 1.46 toward the end of December. One can only imagine the 

Results of Accenture Survey on Sources of Risk That Affect Global Supply Chain Performance 

Risk Factors Percentage of Supply Chains Affected 

Source Adapted from Jaume Ferre, Johann Karlberg, and Jamie Hintlian, Integration The Key to Global Success. Supply Chain Management Review (March 2007) 24-30. 

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