A new approach to supply chains

Covid forced a change

In an era of benign geopolitics and expanding global trade, companies directed manufacturing to the lowest cost source of production.

Complex supply chains snaked across borders, often with multiple manufacturing plants. The pandemic forced an abrupt reappraisal of this approach, with repercussions for many European companies. As countries adopted their own lockdown strategies, fragmented supply chains ceased to function effectively. It exposed the vulnerability of the existing supply chain model. Companies sought to revisit their approach, recognising that while it may have lowered production costs, it had left them without supply at crucial moments, which had damaged their profitability. Deep Dive: Banking worr...