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What’s in the Future for the Global Supply Chain?

A post-Covid outlook

Eric Buatois
Tue, 06/30/2020 - 12:02
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As the coronavirus wreaks economic turmoil around the world, our modern supply chains are facing unprecedented stress. For months prior to the Covid-19 crisis, trade tensions had been mounting due to the escalating tariff war between Washington and Beijing. A rise in protectionism, coupled with concrete costs and new financial barriers, has fueled broader challenges and concerns for worldwide logistics networks. Against this backdrop, our modern supply chain infrastructure is well overdue for a rethink.

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Today’s globalized supply chain networks have been optimized to identify minimum lead times at the lowest possible costs. However, rapid political developments, extreme climate events, and now a global pandemic have all revealed the hidden costs of single-source dependencies and poor flexibility in adapting to real-time shocks, with fast changes to supply and demand. During the next several years, as we undertake a broader overhaul of our logistics infrastructure, I believe that a new order will emerge based on three key dimensions.

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