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POST-COVID SUPPLY CHAINS
SHOCK TACTICS
If you think supply chains will change unreservedly once the COVID panic is over, think again. They already are, and the pace of change is accelerating with very little ‘off the table’ when it comes to building resilience so evidently exposed by the pandemic, a new white paper from Bastian Consulting explains.
Data from Tradeshift, a global platform for supply chain management, reveals the lingering shock and ongoing trends most likely to shape the future of global supply chains in a post-COVID world...
Supply chains are diversifying for risk management, fueled by government incentives
To avoid another disruption on such a massive scale as COVID-19, companies have re-examined their supply chains critically
and restructured flows and networks. These preventive measures aim to build resilience and reduce supplier dependency on a single source, country or region. Governments have also introduced stimulus packages, new incentives and initiatives to encourage supply chains in their diversification and bringing manufacturing activities back to their own country.
Indonesia, for example, has announced plans to build one of its largest industrial parks on a 4,000-hectare site in Central Java to attract
manufacturers. The Japanese government has also earmarked $2.2 billion to help its manufacturers move back to Japan. Recently in September, India, Japan and Australia also began their discussion on a resilient supply chain initiative in the Indo-Pacific region, with invitations sent to other Asian countries.
This has led to a boost for other low-cost manufacturing environments in Asia such as Vietnam, Malaysia and Thailand. As more manufacturing companies move to locations in Asia, the TAPA Security Standards will play a major role in providing a uniform and recognized standard to secure their operations in a new environment.
Shift towards micro supply chains and advanced manufacturing
With diversification, growing unemployment and changing consumer demand, the crisis has brought back a focus on reinvigorating local manufacturing for critical industries, especially for advanced manufacturing which can supplement local operations with technology such as 3D printing, high-tech automation and
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