Ongoing global supply chain challenges spell the growing need for resiliency and sustainability

After nearly three decades of expansion, the forces of globalization—which have helped fuel economic growth through greater trade, exchange, and openness—are in retreat. Barriers are going up, and global trade declining. Protectionism is on the rise. The world’s two largest economies, the U.S. and China, appear to be on a path of continued confrontation. Actions like Brexit and punitive trade wars are making economies more isolated than not. And while it is too soon to quantify the extent and duration of the disruption resulting from the crisis in Ukraine, it is already clear that the ripple effects will be immense and long-lasting. A long-term realignment of supply chains is underway. The biggest near-term implication will be increased economic friction, reversing more than two decades of falling prices and access to cheap goods. We should expect continued rising prices and inflation, as well as the distinct possibility of increased global conflict.

Our AlixPartners Disruption Index shows that CEOs are concerned with the impact of supply chain disruptions, but few are taking long-term action in response and even fewer saying the actions they are taking are not enough. The pace at which disruptive forces impact businesses today means leaders can no longer “wait and see.” The best-performing companies disrupt and reinvent themselves on a continual and ongoing basis. Continue reading for insights from our experts on how business leaders can help their organizations build resiliency and sustainability into their models to meet the challenges of ongoing supply chain disruption.

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