Manufacturing promotes safety and security and mitigates risk. Controlling your supply chain and mitigating geopolitical risk can become paramount overnight as geopolitical events occur, natural disasters emerge, and supply chain challenges arise (strikes, disruptions, shortages).
The recent turmoil in the Red Sea, triggered by Houthi drone and missile attacks, has significantly amplified risks in global shipping, particularly affecting the Suez Canal and Red Sea routes.
Supply chain disruptions are nothing new for the shipping industry. The COVID-19 pandemic presented an unprecedented challenge for the industry. Lisa Anderson comments on the disruptions arising from the current Houthi attacks in the Red Sea and the implications.
The best consulting clients are razor focused on supply chain volatility, risk and capacity. The recent events in the Red Sea highlight these critical priorities.
China is Israel’s number two trading partner, and so there will be a significant impact to that trading relationship during the war. There will be disruptions due to labor shortages as business workers are called up as army reservists, and as disruptions occur due to the war.
Lisa Anderson of LMA Consulting Group was quoted on Bloomberg Law about risk to China-linked supply chains, especially geopolitical risk, prompting some companies to rethink where they source their materials or manufacture their products.
Companies went global for the past few decades with a gusto to save labor costs. The pandemic jolted many Executives eyes open to the risks in the global supply chain. Suddenly, companies were reevaluating their global footprint with an eye to cost, risk (supply chain, geopolitical, etc.), customer performance, etc.
Israel was attacked by Hamas, and the world has another war in another region of the world. Since the global supply chain is interconnected, in addition to the devastation in the region, supply chain impacts will emerge.
Lisa Anderson was interviewed on the Lou Desmond radio show to talk supply chain. John Tulac, international business attorney, hosted the show to talk the status of the supply chain and what opportunities will emerge.
The awareness of the importance of international supply chains has grown in recent years, not just among the business fraternity, but more widely in the media, among politicians and ordinary citizens as well.
