Supply Chain Disruption - Thematic Research

Supply Chain Disruption - Thematic Research

Summary

A supply chain comprises the activities and processes that organizations perform to manufacture and deliver goods and services to consumers. Supply chain disruption occurs when these processes are compromised. Disruptions have become the new normal, and supply chains must be re-engineered to withstand these events.

Key HighlightsMany corporate leaders view the risks and costs of reconfiguring their supply chains as greater than leaving them as they are. Many believe that reconfiguring supply chains could seriously damage the global economy. According to the World Trade Organization, decoupling into Western and Eastern blocs would cause the global economy to lose almost 5% of output, equivalent to more than $4 trillion.Re-engineering supply chains is an enormous task, and corporate budgets will be squeezed as the global economy moves into a possible recession. However, it must be done.The sheer complexity of supply chains means that there is a long way to go in utilizing technologies to reconfigure supply chains and deliver new efficiencies through analytics and automation. No single solution will be available in the short term.ScopeThis report looks at global supply chains, the issues disrupting them, and the steps companies can take to mitigate supply chain risks.It examines in details the reasons behind today's supply chain disruption. These include global economic turmoil, COVID-19, and the Ukraine war.It provides examples of complex, global supply chains.It analyzes technologies that can be used to reconfigure supply chains and deliver efficiencies, including advanced data analytics, alternative energy sources, digital twins, factory florr digitalization, recycling, and synthetics.Reasons to BuyUp until 2020, supply chains were incredibly resilient and efficient. Everything was delivered seamlessly, on time, and at a low cost—to the benefit of companies and consumers. As such, few people were focused on them. According to GlobalData’s Social Media Analytics, supply chains were mentioned on Reddit and Twitter only 1,908 times in 2019.Supply chain vulnerabilities have been exposed by several recent events, including COVID-19, the semiconductor shortage, and the Ukraine war. Supply chain disruption is the new normal. In 2021, social media mentions of supply chains reached 25,636, a thirteen-fold increase from 2019. The world order that enabled globalization and those resilient, efficient supply chains is splintering. A new order of de-globalization will replace it.This report will help you understand the causes of supply chain disruption and provide companies with actionable insight into how they can be re-engineered to withstand these events.