- February 27, 2019
- Posted by: admin
- Category: Uncategorized
The Global Supply Chain-Over the last several years, the global economy has been experiencing disruption at an unprecedented pace. For multinational manufacturers, this has often meant that decision-making has evolved to be more rapid in the midst of an uncertain future. The trade war between the U.S. and China, as well as the ongoing Brexit negotiations, are examples of economic disruptions that manufacturing leaders should be aware of when developing supply chain strategies.
Though economic nationalism is not a new phenomenon, 46 percent of senior supply chain decision makers and logistics professionals cite it as one of the biggest challenges they currently face. This is according to recent research from LLamasoft The End of Globalization? Global Manufacturing Supply Chains Succumbing to Economic Nationalism. As protectionism continues to be a challenge for the world’s supply chain leaders, they must be prepared for future challenges in 2019 and beyond.
Current Challenges Manufacturers Face
Though economic nationalism is a primary concern that leaders are presently facing, taxes and duties (50 percent), natural disasters (44 percent) and environmental policies and initiatives (43 percent) are other significant threats impacting global supply chains. The impact of these challenges is felt worldwide and has forced organizations to remodel their supply chains in response to emerging situations while developing strategies for potential scenarios that might take place as a result of these threats. For example, economic nationalism is a stronger threat in the U.K. than in other parts of Europe (64 percent, compared to 43 percent in Germany and 35 percent in France). This heightened focus could be attributed to Brexit and the instability U.K. businesses face. In the face of growing economic nationalism, 66 percent of respondents indicated that they are willing to change their supply chain to tackle related issues, but only half are likely to change their supply chain in anticipation of economic nationalism.
Protectionism is perceived as a threat to supply chains in all global regions, with the majority of organizations in the report stating that they are likely to adapt their supply chains to tackle this disruption. However, almost half will wait until they begin to feel an impact before they change their strategies. By that time, though, it could be too late for many companies. Waiting until an impact is felt can result in lost revenue and time, both of which can have a negative impact on a company’s performance and ability to compete on a global scale. Manufacturers need to begin planning for the unknown now so that they are better prepared for unforeseen scenarios.
Read More Here
Article Credit: Manufacturing.net
The post What Protectionism Means for the Global Supply Chain appeared first on erpinnews.