Supply chains, the intricate networks connecting individuals, organisations, resources, and technologies in creating and selling products, play a vital role in our interconnected world. Beyond offering a wide array of goods and services, supply chains pave the way for local economies to engage in global expansion, making them integral to economic growth.
The global supply chain is valued at a staggering $15.85 billion, encompassing an extensive array of components and interactions. Governments are taking a closer look at supply chain resilience, recognising it as a matter of national security. This shift might lead to more active involvement in sourcing and trade, potentially leading to new challenges in the import-export landscape.
Notably, the cost of supply chain disruption averages $1.5 million daily. With this in mind, supply chain visibility is becoming a strategic concern for industry professionals. The World Economic Forum projects that global supply chain disruptions could wipe out $1.5 trillion in value during 2023.
Even nations and businesses prepared for such scenarios face vulnerabilities. The top 5 countries with the most resilient supply chains in 2023 were Germany, Japan, Switzerland, The Netherlands, and South Korea. Whilst these countries have managed to establish resilience, they are not immune to challenges. For instance, Germany faced substantial disruptions during the early stages of the COVID-19 pandemic, and Japan encountered difficulties during the aftermath of the Great East Japan Earthquake in 2011.
Anticipating the future, supply chain innovation hinges on technology adoption. Technologies like AI, blockchain, IoT, 3D printing, and robotics will shape the landscape. Notably, 50% of businesses have increased their supply chain technology investment in 2023, signalling a growing recognition of its transformative potential.
Inevitably, supply chain security presents a pressing challenge ripe for innovation and investment.
