{"id":1957,"date":"2021-08-06T12:54:13","date_gmt":"2021-08-06T11:54:13","guid":{"rendered":"https:\/\/www.theofficialboard.com\/best-articles\/?p=1957"},"modified":"2021-08-06T12:56:08","modified_gmt":"2021-08-06T11:56:08","slug":"achieving-supply-chain-resilience-in-a-volatile-world","status":"publish","type":"post","link":"https:\/\/www.theofficialboard.com\/best-articles\/2021-07\/achieving-supply-chain-resilience-in-a-volatile-world\/","title":{"rendered":"Achieving supply chain resilience in a volatile world"},"content":{"rendered":"\n

Viewed in BCG<\/a><\/p>\n\n\n\n

On the whole, the global pandemic has already cost the global economy trillions\u2014and that toll still mounts.<\/p>\n\n\n\n

Learning moments<\/h5>\n\n\n\n

It also is proving a learning moment for most companies as they identify new opportunities and challenges. <\/p>\n\n\n\n

Like many business thought leaders, management consulting firms, especially the biggest ones, are tending to predict that the global economy has not just changed for the moment but forever. That change, they argue, has led to reciprocal changes by companies operations, cultures, and strategies. Trends in trade look to be particularly impacted.<\/p>\n\n\n\n

New Trade Trends<\/h5>\n\n\n\n

Along with Bain & Company and McKinsey & Company, BCG takes rank as one of the top three management firms in the world (they are second in revenue after McKinsey & Company), and the companies that pay them seek insight beyond what is immediately visible as it relates to their specific organizations, their respective industry sectors, and the global economy as a whole. <\/p>\n\n\n\n

So what\u2019s in store for global trade post-pandemic? BCG addresses this question in their new study, \u201cAchieving Supply Chain Resilience in a Volatile World,\u201d released in July.<\/p>\n\n\n\n

The pandemic\u2019s impact on trade and the global economy have, obviously, been profound. Global trade, BCG predicts, is on track to return to its pre-pandemic 2019 levels by 2022-23 following an eight percent reduction in such trade since the pandemic\u2019s onset. <\/p>\n\n\n\n

Inflationary pressure  <\/h5>\n\n\n\n

Inflationary pressures are also proving a present tense reality\u2014and one likely to endure for the time being. In the United States, inflation has historically been well contained since the late 20th<\/sup> century, But partly stemming from unprecedented federal spending in the face of the pandemic, it is now running at roughly five percent.  <\/p>\n\n\n\n

Environmentally friendly policies<\/h5>\n\n\n\n

Globally, this inflationary trend is also being fueled by ongoing and anticipated environmentally-friendly policies that most companies have adopted or expect to soon adopt. Roughly 80 percent of companies, according to a survey of 1705 executives and operations managers, say their companies seek to ultimately reach carbon-neutral operations and 60 percent say they anticipate reaching this by 2030 or earlier. These ambitious objectives will not come without costs, and those costs almost surely will passed on to consumers.  <\/p>\n\n\n\n

U.S. – China decreasing trade<\/h5>\n\n\n\n

Trade between the U.S. and China, the world\u2019s two largest economies, could prove the most profound post-pandemic change. BCG sees substantial reductions in this trade, likely a roughly 3.7 percent downturn annually through 2030, which will reflect a sizable $114 billion reduction in the overall U.S.-China trade relationship by that year. <\/p>\n\n\n\n

Southern hemispheric growing trade<\/h5>\n\n\n\n

But while trade between the two largest economies is expected to shrink, global trade between those two economic giants and the rest of the world and trade between other economies will grow at roughly 2.7 percent overall annually, BCG predicts.  Trade in the southern hemispheric economies of Africa, Australia, the ASEAN nations of South Asia, and the Mercosur region of Latin America show signs of growing most substantially.<\/p>\n\n\n\n

Healthcare nationalism<\/h5>\n\n\n\n

The pandemic\u2019s impact on sectors is expected to be both profound and varying, BCG reports. In healthcare, for instance, some developed economies, especially India and the U.S., seem committed to reducing foreign dependence and to enacting policies and other measures to enhance their self-sufficiency in this sector. <\/p>\n\n\n\n

Semiconductor shortage<\/h5>\n\n\n\n

In technology, the world also faces at least a short-term shortage of semiconductors, which could last several years as a result of production disruptions and other factors, BCG reports.<\/p>\n","protected":false},"excerpt":{"rendered":"

Viewed in BCG On the whole, the global pandemic has already cost the global economy trillions\u2014and that toll still mounts. Learning moments It also is proving a learning moment for most companies as they identify new opportunities and challenges. Like many business thought leaders, management consulting firms, especially the biggest ones, are tending to predict… More<\/a><\/p>\nRead more...<\/a>","protected":false},"author":1,"featured_media":1557,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[309],"tags":[230,312,313,310],"class_list":["post-1957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2021-07","tag-bcg","tag-environment","tag-supply-chain","tag-trade"],"yoast_head":"\nAchieving supply chain resilience in a volatile world - The Official Board\u2019s Reads<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.theofficialboard.com\/best-articles\/2021-07\/achieving-supply-chain-resilience-in-a-volatile-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Achieving supply chain resilience in a volatile world - The Official Board\u2019s Reads\" \/>\n<meta property=\"og:description\" content=\"Viewed in BCG On the whole, the global pandemic has already cost the global economy trillions\u2014and that toll still mounts. 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