How to Make Global Supply Chains More Resilient

Abstract

Post-pandemic, companies have four main options to reduce rigidity and increase resilience in global supply chains: make them more domestic (e.g., reshoring, stockpiles); make them shorter (e.g., reducing the physical distances traversed by supply chains through regionalized production, such as Mexico and Central America for the US); make them more diversified (e.g., reduce dependence on one or a few countries); and make them more digital (e.g., digital versions of real products and using digital technology to track the supply chain better). This article outlines key government policies that can support these corporate strategic options.