We’re in a New Era of Supply Chain Disruption, HSBC Analyst Says

Supply chain managers face unprecedented challenges from the COVID-19 pandemic, ongoing geopolitical conflicts, and a historic year with over 60 countries holding elections. HSBC Americas head of global trade solutions, Marissa Adams, asserts that supply chain disruption is now the new norm, emphasizing that companies must adapt to these constant disruptions.

Adams highlights the complexity of current global supply chains, noting the pressures from inflationary environments and issues like attacks in the Red Sea and drought in the Panama Canal causing route changes. Trade remains a significant campaign topic globally, driven by protectionism and nationalism. She advises companies to shift from “just in time” to “just in case” strategies, focusing on resilience and reducing costs, and suggests a deep analysis of supply chains for risks, managing relationships with China’s business sector, and considering potential risks holistically.

For investors, Adams recommends watching senior leadership’s focus on supply chain resilience, evaluating company concentration in key sectors, and assessing infrastructure investments. At TLC, we assist in navigating these complexities by leveraging our expertise in risk management and supply chain resilience. Call us today to discuss how we can help you strengthen your supply chain strategy.

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