The best consulting clients are razor focused on supply chain volatility, risk and capacity. The recent events in the Red Sea highlight these critical priorities.
China is Israel’s number two trading partner, and so there will be a significant impact to that trading relationship during the war. There will be disruptions due to labor shortages as business workers are called up as army reservists, and as disruptions occur due to the war.
Lisa Anderson of LMA Consulting Group was quoted on Bloomberg Law about risk to China-linked supply chains, especially geopolitical risk, prompting some companies to rethink where they source their materials or manufacture their products.
Companies went global for the past few decades with a gusto to save labor costs. The pandemic jolted many Executives eyes open to the risks in the global supply chain. Suddenly, companies were reevaluating their global footprint with an eye to cost, risk (supply chain, geopolitical, etc.), customer performance, etc.
Israel was attacked by Hamas, and the world has another war in another region of the world. Since the global supply chain is interconnected, in addition to the devastation in the region, supply chain impacts will emerge.
The world of supply chain and logistics has been plagued with volatility, disruptions, geopolitical issues, concerns about energy availability and transition, increased regulations, and rare earths.
There are mountains of geopolitical threats going on with significant impact on the supply chain. Most, if not all of these also relate to natural resources.
According to an article in Foreign Affairs, the per capita available water supply around the Northern China Plain (253 cubic meters) is nearly 50% below the UN definition of acute water supply.
On a recent trip to Europe, I was fortunate to combine work with pleasure. Finland is diverse from Helsinki to the arctic circle, and we were thrilled to gain picturesque views of the northern lights. I was surprised there are multiple cruise ships that go from Helsinki to Estonia each day because the people and countries are interconnected.
Listen to find out how some of the top supply chain consultants around the world are working with their clients to help them deal with rising inflation and interest rates.
