Your supply chain is only as strong as your weakest link. In this Supply Chain Byte, Lisa Anderson, President of LMA Consulting Group, shares why true supply chain resilience means looking beyond your immediate partners. From suppliers’ suppliers to contract manufacturers and logistics providers, visibility and alignment are critical. Lisa talks about 4 key areas of immediate importance in manufacturing.

After the tariffs went into effect, China has blocked Boeing deliveries and has blocked shipments of rare earths. If that doesn’t prove the critical nature of the end-to-end supply chain, there is nothing that will! Rare earths are required for almost everything essential from medical devices to goods movement to the latest technologies and defense.  In fact, there are four key areas of focus for the end-to-end supply chain:

  1. Rare earths: Although rare earths aren’t rare, they must be extracted and processed. Currently, China processes 85% of the world’s rare earths required for everyday items. It is not sustainable. Refer to our recent Supply Chain Byte. 
  2. Artificial intelligence: AI is the future of supply chains; it is similar to the invention of the internet.  Nvidia announced that for the first time ever, an AI supercomputer will be built entirely in the U.S. Those on the edge of the future will drive the future.
  3. Energy: Everything runs on energy. AI requires a huge amount of energy (refer to our recent Supply Chain Byte), let alone the energy required to manufacture, move goods and people from one place to another, to run our houses, etc. 
  4. Pharmaceutical API’s: The active pharmaceutical ingredients are similar to rare earths. Without them, it doesn’t matter what you produce, package or distribute. China and India dominate API production. 

Ensure you assess vulnerabilities in your end-to-end supply chain and take action before disruption hits. In addition, if you want to thrive, be ready to take advantage of opportunities as the U.S. jumps on these issues aggressively. Create and encourage visibility, resiliency, curiosity, and creativity in your organization so that you are prepared for success.  

 

If you are interested in reading more on this topic:
Geopolitics, Natural Resources, & Impacts to the Supply Chain

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