The Resiliency Compass: Navigating Global Value Chain Disruption in an Age of Uncertainty
Summary
The report argues that global value chains are facing a 'perfect storm' of disruptions, with only 12% of surveyed companies currently considered 'resilience leaders.' It proposes the 'resiliency compass'—a framework of eight dimensions across demand-facing and supply-facing operations—to shift corporate mindsets from 'just-in-time' to 'just-in-case' risk mitigation.
Key insights
- A survey of over 400 senior executives and government representatives reveals that only 12% of companies are 'resilience leaders' who are sufficiently protected against future disruptions, while 88% urgently require additional measures to build resilience.
- Global value chains are currently impacted by a 'perfect storm' of three primary mega-trends: emerging technologies (which increase cybercrime risks), environmental sustainability (where the climate crisis threatens supply continuity), and geopolitical tensions (leading to protectionism and localized supply chains).
- The report identifies a fundamental shift in supply chain management from a 'just-in-time' cost-optimization model to a 'just-in-case' risk-mitigation approach, where 'best-cost' is prioritized over 'lowest-cost'.
- The 'resiliency compass' framework consists of eight dimensions divided into demand-facing (product portfolio, customer orientation, financial viability, and go-to-market channels) and supply-facing (logistics system, manufacturing network, supplier landscape, and advanced planning).
- Analysis of the resiliency dimensions shows varying levels of preparedness: only 14% of firms have mastered robust and transparent logistics systems, and only about one in eight firms have adopted advanced planning tools.
- The economic impact of COVID-19 on global income, estimated at over $3,500 billion by the International Labour Organization, exceeded the combined impact of all other supply chain disruptive events from the previous decade.
Cite the original document
- APA
- World Economic Forum (2021). The Resiliency Compass: Navigating Global Value Chain Disruption in an Age of Uncertainty. http://www3.weforum.org/docs/WEF_Navigating_Global_Value_Chains_Disruptions_2021.pdf
- Chicago
- World Economic Forum. The Resiliency Compass: Navigating Global Value Chain Disruption in an Age of Uncertainty. 2021. http://www3.weforum.org/docs/WEF_Navigating_Global_Value_Chains_Disruptions_2021.pdf.
- Wikipedia
- {{cite report |author=World Economic Forum |title=The Resiliency Compass: Navigating Global Value Chain Disruption in an Age of Uncertainty |date=July 2021 |url=http://www3.weforum.org/docs/WEF_Navigating_Global_Value_Chains_Disruptions_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldeconomicforum2021resiliency, author = {{World Economic Forum}}, title = {{The Resiliency Compass: Navigating Global Value Chain Disruption in an Age of Uncertainty}}, institution = {World Economic Forum}, year = {2021}, month = jul, url = {http://www3.weforum.org/docs/WEF_Navigating_Global_Value_Chains_Disruptions_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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