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COMPANIES
MUST REDUCE
SUPPLY CHAIN
RISKS
Ben Simpfendorfer
Sandeep Agarwal
Tushar Narsana
Companies Must Reduce Supply Chain Risks
EXECUTIVE SUMMARY
Global supply chains are e?cient but fragile. Geopolitical
tensions, natural disasters, and pandemics have all caused
major disruptions to global supply chains over the past
?ve years.
China remains integral to global supply chains. Given the size
of China’s domestic market and the fact there is no simple
substitute for the country’s export sector, it is di?cult for
foreign companies to fully decouple from China.
However, global companies are adopting a range of strategies
to reduce their exposure to China. These strategies include
“China + 1” or reshoring strategic products and parts,
especially in sensitive sectors.
Foreign companies need to understand their current risk
exposure. They also need to prepare a Plan B, particularly in
the event geopolitical tensions worsen.
In this paper we identify a series of no-regret moves
companies can take to de-risk supply chains. These include:
?Understand your geopolitical risk exposure
?Decide which products to relocate
?Choose which markets to relocate。。。以下略