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.
In the last month, clients have been proving the critical importance of SIOP (Sales Inventory Operations Planning), also known as S&OP or IBP (Integrated Business Planning) time and again.
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.
Lisa Anderson of LMA Consulting Group was quoted in the Snowflake blog about how data is critical to healthcare - especially in times of supply chain vulnerability as a result of natural and man-made disasters.
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.
Inflation and disruption are increasing again. Wholesale inflation as measured by the producer price index increased by .5% since last month which was more than expected. Core inflation (excluding food and energy) went up by .3% which was also more than expected.
The Israel-Hammas conflict is a stark reminder that global supply chains can be disrupted by unforeseen political events. No matter the safeguards in place, events like this can be major disruptors. That is why organizations must cultivate options to mitigate risk and protect their bottom line
The awareness of the importance of international supply chains has grown in recent years, not just among the business fraternity, but more widely in the media, among politicians and ordinary citizens as well.
Inventory accuracy is foundational to success. Most clients aren't concerned about inventory, and they shouldn't be if they can count on what their system says.
