Supply chains have become indispensable for global commerce in the rapidly evolving global economy. However, the pandemic has exposed vulnerabilities and risks of concentrated supply chains. Production, transportation, and distribution disruptions have cascading effects on the global economy. Globally, diversifying supply chains have become an urgent imperative to enhance resilience and minimise disruptions caused by unforeseen shocks, such as natural disasters, geopolitical conflicts, and pandemics.
Strategies for building resilient Supply Chains
The primary goal of diversification is to create stronger safety nets, flexibility, and adaptability within supply chains, enabling them to withstand external shocks with minimal disruption. Achieving this involves various approaches, such as expanding the number of suppliers, implementing redundant logistical solutions encompassing multiple modes of transportation, and considering near or re-shoring options to bring operations closer to home.
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