The coronavirus pandemic is offering manufacturers a rare opportunity to reduce their dependence on sourcing from China.
The outbreak of COVID-19 has fractured supply chains the world round, as manufacturers scramble for safe places to make their products (assuming there’s any demand for them). But when it comes to making crucial decisions about reducing the risk of single-sourcing in China, the crisis “is not a disruptor. It’s an accelerant.” So says Jacob Shapiro, founder of Perch Perspectives, an international business and political consultancy. Companies that threw in their lot with China because of that country’s cheap labor and ability to produce at massive scale are quickly learning of the downside that comes with concentrating manufacturing in one country, no matter how attractive it might seem. With the pandemic focusing executive attention on supply-chain risk, COVID-19 offers “a massive Get Out of Jail card,” Shapiro says. Time for a change. Hosted by Bob Bowman, Editor-in-Chief of SupplyChainBrain.
Perch Perspectives’ report: “Thinking Beyond the Panic: COVID-10’s Long-Term Impact on Supply Chains in Asia.”
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