Mitigate the Risks of Supply Chain Disruption
Monday, May 10, 2021
If the recent pandemic has taught business leaders anything, it’s that solid readiness planning through diversification and data analysis can reduce the impact when a crisis hits. Nearly half of operations leaders surveyed in the recent PwC US Pulse Survey indicated that reducing supply chain disruptions is “very important.” But few companies are ready to make the costly move of reshoring or nearshoring, even though a recent executive order put an emphasis on the potential upsides of moving supply chains to — or closer to — the United States or allied countries. Recent changes to multinational trade agreements also further complicate supply chains — often requiring in-depth proof of origin for products and their individual components.
The February 24 Executive Order, which looks to review the vulnerabilities in U.S. supplies of critical technologies, metals, and pharmaceuticals, adds further urgency to fixing the disconnects. While it’s unlikely any laws will go into effect in the near term, the eventual resulting policy from the review could have long-term implications for U.S. businesses.