how to reduce the uncertainty faced by the global supply chain?

Under the epidemic situation, the global supply chain has appeared the trend of localization, industrial diversification and informatization. The global supply chain crisis coexists. Although it has been seriously impacted by the epidemic situation, a new round of scientific and technological innovation and industrial reform is also leading the global supply chain to accelerate the restructuring

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Sun yingni, reporter of Finance and Economics
Editor: Wang Yanchun
At present, the novel coronavirus pneumonia spread worldwide, and trade protectionism and anti globalization have risen. This has caused serious impact on the global supply chain, and the uncertainties and uncertainties have increased significantly. Facing the future, where should the global industrial chain supply chain go?
On November 13, at the 2020 annual meeting of China development high level forum, domestic and foreign guests made suggestions and suggestions on how to develop the global supply chain in the post epidemic era during the discussion on the topic of “post epidemic era: where to go for global supply chain”.
Accelerating the restructuring of global supply chain
Experts at the meeting believe that the global supply chain under the epidemic situation has appeared the trend of localization, industrial diversification and informatization, and the global supply chain crisis coexists. Although it has been seriously impacted by the epidemic situation, a new round of scientific and technological innovation and industrial reform is also leading the global supply chain to accelerate reconstruction.
Wu Fulin, President of the Export Import Bank of China, said that at present, more than 500000 new cases are newly diagnosed in the world every day, and the epidemic area covers the supply chain of the whole industry chain from raw material supply to high-end production.
Wu Fulin believes that there may be three major trends in the global supply chain under the epidemic situation, which requires high attention. One is limited globalization, close regionalization and full localization, and the industrial chain distance is shortened or even deformed. Second, the industrial chain tends to be diversified, decentralized and diversified. In order to reduce the risk of over reliance on single market channels, products and technologies, people do not put eggs in one basket and have a stronger sense of backup. Third, more information, digital and intelligent. Information technology can improve the operation efficiency of the supply chain, and digital technology is very important to enhance the resilience of the supply chain under the epidemic situation. In such a situation, the international community should strengthen cooperation to promote the orderly operation of the global supply chain.
Novel coronavirus pneumonia and the Sino US trade policy differences have led many American businesses to see their supply chains vulnerable, said Professor Nobel, a professor at Columbia University and an economist at the Nobel prize in economics. “Some pharmaceutical companies have also had to close down due to a shortage of parts for a few weeks,” it said
Edmund Phelps said that some companies that had previously outsourced parts production were now forced to think that they had to make them themselves, and even though doing so would greatly increase costs, they felt they could not afford the uncertainty of relying on foreign companies to provide parts.
At the same time, American manufacturing companies are now under new political pressure. “Enterprises used to rely on overseas supply of some key components, but now they have to rely on domestic supply. This can raise the wages of American workers and restore the participation of male labor force.” Said Edmund Phelps.
Sanjay Mehrotra, President and CEO of Meguiar technology, said that this year, we have seen the challenges facing the global economy, but China’s “double 11” has a large number of users participating, and there are a large number of transactions every second on the cloud platform. Cloud platform, artificial intelligence, 5g and other technologies make it possible to have a huge transaction volume, and these technologies also promote the development of various industries At the same time, it also brings new opportunities for the global supply chain.
“In 2020, all this will become very important. The availability of technology will make it easier for people to connect and analyze data, which will enable enterprises to strengthen their innovation ability, improve their productivity and make decisions faster and better.” Sanjay Mehrotra said that technology has enabled a lot of progress. 5g networks are constantly being launched, and artificial intelligence platforms are constantly evolving. This means that we have more opportunities to further realize digitization and connectivity. In the whole manufacturing value chain, we can realize the connection of point-to-point intelligent devices.
Sanjay Mehrotra stressed that the future of the supply chain must be restructured in order to improve productivity and bring more flexibility and agility.

1 Response

  1. Meilani says:

    China is currently facing a huge risk of imported cases, which further increases the risk of stagnation in international trade and disruption in global supply chains.

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