In 2003, during the SARS epidemic, China accounted for 4% of global output, but today China accounts for 16%, four times as much. Globalisation has increased since then and so has our dependence on China. Post COVID-19 I looked at how likely it is for this dependence to continue.
As businesses reassess their supply chain strategies, I discussed the key objectives of future supply chains with senior supply chain executives. The consensus was that the experiences of doing business the Covid-19 have shown that supply chains need to:
- Increase resilience while reducing risk and vulnerability
- Increase diversification providing more responsiveness and agility
- Increase value although not necessarily reducing cost
- Ensure continuity of supply in the face of future global events
So, how do businesses achieve these improvements to their supply chains? UK business has four key decisions regarding supply chains;