Global supply chains have been rebuilt in the wake of the pandemic and concern about the risk that disruptions can cause has dissipated markedly in the past two years from 31% in 2021 to 20% today. ‘Just in time’ supply chains have given way to ‘just in case’ and nearshoring has entered the industry lexicon.
However, challenges persist and more than a third of businesses globally (35%) plan to further increase agility in their supply chains during 2023. The COVID-19 effect has been compounded by rising geopolitical tensions and trade disputes, which have intensified in recent years, leading to increased tariffs, trade barriers, and regulatory complexities. Organisations need to closely monitor geopolitical developments, engage in proactive risk assessment, and explore alternative sourcing options to minimise disruptions.