THE SUPPLY CHAIN DISRUPTION CONUNDRUM


There is little doubt that ‘supply chain disruption’ is one of the most topical issues of the moment as the world looks to a recovery from the pandemic. The bigger question is how much of this disruption is purely the result of what was always going to be an uneven recovery globally, and how much is due to rather more profound structural issues, which will take a lot more time, effort and above all investment to address.


For many, supply chain disruption primarily implies delayed delivery of raw materials or intermediate goods and parts due to logistical and transport issues or production issues, which will very likely prove to be temporary. The latter are clearly playing a part, but the current phenomenon involves a much broader spectrum of issues, which include concentration risk, perhaps most notably in the output of semiconductors, and above all being felt in the auto industry; production displacement as a consequence of the pandemic, and latterly in labour shortages as economies re-open, despite still high levels of unemployment.


SUPPLY CHAIN DISRUPTION PRIMARILY IMPLIES DELAYED DELIVERY OF RAW MATERIALS OR INTERMEDIATE GOODS AND PARTS DUE TO LOGISTICAL AND TRANSPORT ISSUES OR PRODUCTION ISSUES, WHICH WILL VERY LIKELY PROVE TO BE TEMPORARY.


13 | ADMISI - The Ghost In The Machine | Q2 Edition 2021


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