Tthe Middle East has has long been a vital element crossroads of global tradeserving as a key trade hub for millennia. However, the region is vulnerable has a range of the risks, including both global threats and region specific dangers. It’s not just thathe the region strategic sea routes that are very important for world trade, the region is also home to a number of suppliers which, if disrupted, could impact global economic activity.
In a region Or risk factors can change quickly, adopt A prospective approach — where risk management evolves from reactive from monitoring to proactive foresightt —represents the future of the supply chain resilience. This approach requests agility to react quickly and efficiently, even if the volume data and emerging threats continues to grow.
1) Supply chain visibility Ithis is the foundation effective risk management
The backbone of modern supply chain resilience is data: comprehensive, real-time and actionable. Yet geven if supply chains face constant challenges And their inherent complexity often the fact difficult identify A specific area of concern, many organizations I don’t see the full extent of their exposures. It is especially TRUE upstream levels Or 98% supplier relationships go unnoticed until a crisis arises.
Marsh McLennanIt is Sentrisk data shows that although the Middle East region represents only 1.6% of supplier sites globallythsome sites can have a significant impact in key sectors such as technological manufacturing (Israel), industrial inputs (Arab Gulf States) and agriculture, clothing and automobiles (Türkiye). Disturbances in the region can ripple across all sectors, causing cascading effects that threaten global operations.
Take advantage AI and other advanced technologies, organizations can benefit from unprecedented benefit visibility in their supply chains, discovering critical vulnerabilities such as geographic concentration, weather related exposures, cybersecurity gaps, and bottlenecks. This centralized, real-time visibility allows organizations to understand not only where risks come from, but also how they travel and can expand through what is a complex system.
2) Cultivate a resilient culture
Maximize the benefits of a raise visibility requires an asset engageement on several functions, including supply, operations, legalrisk management, and environmental teams. Supply chain risk management should nnot be the responsibility of a department or company unit.
For example, pprolonged disruption along key trade routes as THE Strait of Hormuz or the Suez Canal Has resulted in challenges, including additional costs, rerouting challenges, And shipping oflaid. Addressing tthese impacts effectively requires information sharing and collaboration between teams develop a coordinated and efficient response to disturbance.