The COVID- 19 pandemic has brought back old fears about the viability of the globalized supply chains. In case there is a contraction in the same, there will also need to be a redesign in the policy over subcontracting, which has been flourishing. It has been so popular thanks primarily to the increased sophistication now needed for manufacturing. Specialists are then most valued during the talent recruitment process. Good and services that are trade-able have also increased in number. While reassessing the supply chain risk, the policy makers will need to consider regionalization. This will ensure specialization, while also allowing for reduced exposure to such risks. Additional safety stocks or second sources need to be developed. The scale and product mix, likewise needs a rethink.

Source:https://sloanreview.mit.edu/article/is-it-time-to-rethink-globalized-supply-chains/

Uploaded Date:24 March 2020