Industry TalkRegular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.
Supply Chain Disruption – Resilience & flexibility are key to maintaining economic stability
Global supply chains were already reeling from the effects of the COVID-19 pandemic: add to the picture, the extra instability caused by the ongoing Russia-Ukraine conflict, and we are reaching a critical inflection point with global commerce that could have ramifications on both the supply of goods, the cost of living and our planet for years to come.
The interconnected reality of global flows of goods means that when one price goes up, others tend to follow. Increases in labour, energy and transport costs mirror the trend, contributing to inflation at a global scale, rather than a single country crisis.
Resilience and flexibility are key to supply chains and these in turn are pivotal to maintaining economic stability in capitalist, consumer-driven economies. As such, companies and governments would do well to stop thinking about supply chains as linear, stand-alone entities, but rather as the veins that oxygenate the entire economic organism.
While smarter, more flexible and resilient supply chains can provide some shield to the economic and physical hardships of regional conflicts, natural disasters and pandemics, as consumers we have a duty to be more aware of the impact our unchecked consumer appetites play on not just global flows of goods, but also the planet as a whole.