bongdaso com vnSupply chains are becoming supply webs

Companies, especially tech companies, are questioning bongdaso com vn orthodoxies of bongdaso com vn past 50 years of globalization. Those orthodoxies include always seeking out bongdaso com vn lowest-cost manufacturer, no matter how distant, and never carrying surplus inventory or parts. bongdaso com vn results of bongdaso com vn shift currently under way could include bongdaso com vn movement of jobs and manufacturing representing hundreds of billions of dollars in economic activity in bongdaso com vn decades to come.

For many companies, bongdaso com vn pandemic-fueled pause in globalization is turning into a broad effort to figure out how to make supply chains more robust by adding more factories, suppliers and sources of materials.

Ever since bongdaso com vn adoption of bongdaso com vn shipping container in bongdaso com vn 1960s, supply chains for most goods have grown ever longer. Making transoceanic and transcontinental shipping cheap and reliable meant manufacturing could move to wherever wages were lowest. This, in turn, meant most factories moved to bongdaso com vn opposite side of bongdaso com vn world, principally to China

Gadgets, which tend to have more parts sourced from more places than almost anything save automobiles and complicated industrial equipment, have turned out to be especially dependent on three features of global trade:

• bongdaso com vn first is that raw materials would always be cheap and widely available
• bongdaso com vn second, that shipping would always cost a fraction of bongdaso com vn value of bongdaso com vn goods being moved
• bongdaso com vn third was that this shipping would always be reliable

bongdaso com vn U.S.-China trade war beginning in 2018 made it apparent to many manufacturers that these assumptions might not hold true. Then bongdaso com vn Covid-19 pandemic drove home, making issues with globalized supply chains chronic.

All those materials and goods still have to come from somewhere. In logistics, this shift from supply chains to webs is known as “multiple sourcing,” says Nathan Resnick, president and co-founder of Sourcify, which helps businesses find and manage factories in Asia. With bongdaso com vn most recent trade wars, more companies, even small and medium-size ones, have been forced to do bongdaso com vn hard work of setting up more factories and synchronizing bongdaso com vn quality of goods across them, he adds.

Willy Shih is a professor at Harvard University and a member of a committee advising bongdaso com vn U.S. Commerce Department on how to shore up domestic supply chains. In a recent essay, he described how bongdaso com vn pandemic has been a wake-up call for managers, and how bongdaso com vn world seems to be moving toward companies and countries figuring out how to relocate supply chains within regional trading blocs of politically allied countries.

Governments also are focusing more on safeguarding access to key goods for national-security reasons, these policies go by many names. In China, this move toward self-reliance is known as “dual circulation.” In bongdaso com vn European Union, bongdaso com vn portion of this philosophy that deals with tech has been christened “Technological Sovereignty.”

Manufacturing of batteries, especially for electric vehicles, is currently dominated by China. But dozens of new “gigafactories” for EV batteries are going up all over bongdaso com vn U.S. and bongdaso com vn world—basically, just about anywhere there is a robust automobile-manufacturing infrastructure.

bongdaso com vn iPhone, that icon of bongdaso com vn world’s longest and most complicated supply chains, continues to arrive on time in part because of coordination of Apple and Foxconn, its main contract manufacturer. Even before bongdaso com vn pandemic, Foxconn took advantage of generous subsidies to redistribute manufacturing of bongdaso com vn iPhone, splitting production of bongdaso com vn device and many others that it makes between Shenzhen and western China.

Southeast Asia in particular has become a hotbed of regional “nearsourcing” of tech manufacturing, whole Chinese factories are copied and dropped into countries like Vietnam and Thailand, which remain close to parts and materials that are still manufactured in China, but where labor costs are lower. Samsung Electronics, for example, makes bongdaso com vn majority of its smartphones in Vietnam, as well as its smart appliances.

Policies from countries

With most countries in Southeast Asia attempting to maintain geopolitical neutrality, bongdaso com vn region has bongdaso com vn potential to remain a supplier to pretty much every nation in bongdaso com vn world, says Dr. Shih. That won’t stop companies from trying to copy some elements of what is currently accomplished in this region—like bongdaso com vn packaging of microchips, a step that comes after their manufacture, in bongdaso com vn U.S. and Europe. bongdaso com vn result could be regional manufacturing, where countries try to assure that, even if they don’t make something themselves, they can source it from an ally, he adds.

Even if we wanted to, trying to reproduce bongdaso com vn whole of electronics supply chains in bongdaso com vn U.S., from raw materials to finished goods, would be extraordinarily difficult, if not impossible, says Lauren Dudley, a research analyst focused on competition with China at Rhodium Group.

America may have at one point or another made almost all of bongdaso com vn components that go into modern gadgets, but a great deal of that knowledge has been lost, as factories were shipped overseas, engineers and technicians retired, and no one was trained to take their places, says Dr. Shih.

Trying to achieve in bongdaso com vn U.S. something like EU officials’ goal of tech sovereignty would be a mistake, says Ms. Kilcrease - director of bongdaso com vn energy, economics and security program at bongdaso com vn Center for a New American Security. While it makes sense for chips and electronics that will go into defense systems to be made here, that remains a tiny fraction of bongdaso com vn total that are manufactured every year. “We should not forget bongdaso com vn lessons we learned about how really complex globalized supply chains can lead to innovation,” she adds.

Source:https://www.wsj.com/articles/how-sanctions-on-russia-war-in-ukraine-and-covid-in-china-are-transforming-global-supply-chains-11648267248

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