THE HATCHES HOW SUPPLY CHAINS ARE RETOOLING FOR BAD ECONOMIC WEATHER IN THE FORECAST By MARK J. BENTLER CHIEF FINANCIAL OFFICER, TECSYS or decades, international supply chains have grown longer and more convoluted in pursuit of operational streamlining and cost cutting. In truth, many of these efforts have come at the cost of resiliency. Now, our extended global supply chains—characterized by long distances and limited sourcing control—are failing under the turmoil of unceasing global disruptions. Today’s global supply chains are sensitive to disruptions near the source level and beyond— disruptions which have an undeniable ripple effect. As we continue to experience economic fallout from recent events—such as the COVID-19 pandemic, Russia’s war in Ukraine, and geopolitical tensions between the U.S. and China, among others— companies must rethink their approach to supply chain management. BATTEN DOWN 3PL F Global disruptions come in many shapes. On the supply end, organizations are sourcing from distant, hyper-regionalized producers, each with limited raw materials and resources. This approach comes with serious risks: REGIONAL DISRUPTIONS: Geopolitical issues at the supply level can have a devastating impact on supply chains. For example, a recent outbreak of COVID-19 in China cut off one of Apple’s key sources of iPhone components. Russia’s invasion of Ukraine, one of the world’s largest distributors of grain, temporarily inhibited their exports; even those short-term delays put global populations at risk of starvation. Countless organizations and consumers rely on these countries, but their exports are not necessarily exclusive to these regions. It’s a question then DISRUPTIONS AND THEIR IMPACT ON SUPPLY AND FULFILLMENT 36 JAN/FEB 2023 www.globaltrademag.com
Global Trade January February 2023: Page 36
