OPS_FLO_007

Modal Switch Failure

Economic inability to utilize alternative transport modes during disruptions due to low product value-to-density (LI01) and high supply chain fragility (LI06).

Logistics Flow & Inventory 3 Conditions

Business Impact

Revenue Paralysis. Physical inability to bypass logistical bottlenecks via air or express modes leads to total stockouts and lost holiday/seasonal windows.

Trigger Conditions

All conditions must be met to trigger this risk

LI01 Logistical Friction & Displacement Cost
≤ 2 / 5

Standard Intermodal: Optimized for global containerization or standard parcel networks; moderate weight/bulk.

LI06 Systemic Entanglement & Tier-Visibility Risk
≥ 4 / 5

Deep-Tier Opaque: Extremely long supply chains with dozens of 'Black Box' nodes; significant risk of Single Points of Failure (SPOF) at the Tier 3 or Tier 4 level.

ER04 Operating Leverage & Cash Cycle Rigidity
≥ 4 / 5

High Operating Leverage: High fixed 'keep-the-lights-on' costs; profits are extremely sensitive to small dips in volume (e.g., airlines, traditional manufacturing).

Mitigation Strategy

Near-shoring (Regionalization) or flat-pack design optimization to improve LI01 scores.

Risk Cascade

Rules can trigger other rules in a cascade effect:

Example Scenario

Furniture / Large Appliances (ISIC 3100)

Ocean freight congestion prevents sofa deliveries; flying the inventory would cost 150% of the retail price.

Matched Industries

6 industries meet all conditions of this rule:

ISIC 1050 Manufacture of dairy products View scenario → ISIC 1311 Preparation and spinning of textile fibres View scenario → ISIC 2220 Manufacture of plastics products View scenario → ISIC 46 Wholesale trade, except of motor vehicles and motorcycles View scenario → ISIC 510 Mining of hard coal View scenario → ISIC 8291 Activities of collection agencies and credit bureaus View scenario →