Towards a Risk Index for the U.S.-Mexico Supply Chains - A Synthetic Case Study in U.S.-Mexico Border Land Ports of Entry

Abstract

The U.S. - Mexico border has a great significance for the movement of people, but also for the commercial trade. Different industries and supply chains, instrumental for the economic activity of both countries, are involved. To assess their state of risk, and manage potential disruptions at the ports, this study presents a proposal for a Risk Index applied to the border ports of entry, and their related U.S.-Mexico supply chains. In this study, we generated indexes based on an innovative Risk Framework as an extension of the CDC Social Vulnerability Index. This Risk framework defines the Risk as a function of the threats, the system vulnerabilities, and the impact on the systems. The different indexes were obtained through a series of socioeconomic and public health system capacity factors from data sources across both countries. The obtained risk index is a powerful tool to analyze binational supply chain vulnerabilities as it directly gives spatial information on the binational state of risk. Additionally, Risk index values, together with the location of ports of entry, can be used to study the effect that the state of vulnerability has on various metrics affecting supply chains.