The second Cold War is here — and supply chains will be the front lines
Entire supply chains will be rewritten, creating massive volatility and unpredictability
We are witnessing the remaking of the world order in front of our eyes — and this will impact global supply chains in unforeseen ways.
We are about to experience the most dramatic and unpredictable supply chain map we’ve experienced since World War II.
If the Russia-Ukraine conflict’s international ramifications keep spreading, we face a real possibility of a bifurcating global economy, in which geopolitical alliances, energy and food flows, currency systems, and trade lanes could split.
During the first Cold War, the world was anything but flat. There were two worlds — the East and the West. That world is being recreated as we speak, and with it, Western companies will start to shift sourcing away from the East and more toward Western and neutral states. North American economic integration will become a new priority. Surface transportation across the Eurasian continent will become more complex, and possibly contested.
Entire supply chains will be rewritten, with new sources and partners — all in the interest of corporate and national security. This will create massive volatility and unpredictability.
Companies will prioritize vendors that can provide consistent and dependable supplies, likely paying a premium. In the end, those costs will be passed on to consumers in the form of higher prices.
While prices will become an important consideration for consumers, brands that offer a consistently and predictably available set of choices will enjoy pricing power.
The future market winners will be the corporations that make the investments in supply chain infrastructure and reliable, Western-friendly production locations.
Supply chain analyst roles will become the hottest jobs of the next decade, prized by corporations, consulting and even Wall Street for the ability to interpret, analyze and predict disruptions and risks in a new world order…
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