Insight
Title:
A rebalancing of supply chains
Description:
The UK has been particularly hard hit with the convergence of COVID and Brexit resulting in a shortage of lorry drivers and empty shelves.
However, disruption has been on the cards for some time. (Source: From McDonalds to supermarkets: The slow-motion car crash of Britain's labour shortages - CityAM : CityAM published 06/09/2021)
The COVID-19 crisis has forced executives to three conclusions about supply chains.
- Disruptions aren’t unusual. Any given company can expect a shutdown lasting a month or so every 3.7 years. This requires better management.
- Cost differences among developed and many developing countries are narrowing. Technologies like data analytics, human–machine interaction, advanced robotics, and 3-D printing can offset half of the labor-cost differential between China and the United States.
- Most businesses do not have a good idea of what is going on lower down in their supply chains, where subtiers and sub-subtiers may play small but critical roles. That is also where most disruptions originate. The development of AI and data analytics enables deeper understanding of the entire value chain rather than just its top tier.
Source: The next normal arrives: Trends that will define 2021—and beyond