Breaking Globalization Easier Said Than Done: DW

Equipment, whether routine appliances or life-saving ventilators, is manufactured with supply strains stretching over multiple countries. Mathilda Jordanova-Duda, writing for Deutsche Welle, describes how the Covid-19 pandemic prompted Boge, a German air-compressor business, to reassess its supply chains, including motors from Asia, piping from Eastern Europe, cooling systems from China and other components from Italy. Customers suggest they are willing to pay more for reliability, and Boge is planning for more diversification and reconsidering dependence on one region or limited foreign suppliers. One professor of industrial economics points out Asia’s cost advantages have declined due to transition costs, quality control, logistics, government fees, higher communication needs as well as costs of environmental destruction and human-rights violations. Companies invest in new technologies like artificial intelligence to assess supply chains. The German Research Center for Artificial Intelligence, a corporate alliance, launched a project called “Spaicer” to analyze supply chains for commodity prices, political developments and climate change. Establishing a reliable and high-quality supply chain takes at least two years. – YaleGlobal

Breaking Globalization Easier Said Than Done: DW

Globalized supply chains prove fragile during the Covid-19 pandemic – companies increasingly assess risks of globalization and prioritize safe supply
Mathilda Jordanova-Duda
Saturday, May 30, 2020

Read the article from Deutsche Welle about manufacturers reassessing supply chains.

Supply Chain Trends: 2020 -	Sustainability: Customers and companies consider climate change, transportation, materials sourcing and green logistics in product decisions -	Transparency: Customers pose questions on sourcing, labor and sustainability practices, and regulatory compliance -	Blockchain: Analytical tools increase transparency, improving organization and customer service -	Adoption of IoT: Sensors, tracking and real-time information enhance transparency and efficiency -	Robotic automation: Fast deliveries and streamlined logistics allow humans to focus on high-value tasks and improve customer service  -	AI, AR, VR automation: Artificial intelligence improves logistics and identifies patterns while augmented and virtual reality improve product development  -	Agility: Companies must prepare for disruptions whether natural disasters or pandemics, ready to shift to new materials and suppliers.
(Source: Supply Chain Academy)

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