Building Resilient Supply Chains Won’t Be Easy

The pandemic has exposed one of the major weaknesses of many supply chains: the inability to react to sudden, large-scale disruptions. This lack of resiliency has been especially notable in the supply chains of the life sciences, health care, and food industries. The resulting turmoil has generated calls for companies that had offshored production to Asia (and China, in particular) to bring it back home. But this approach is no panacea. For one thing, given the huge size of the Chinese market, most global companies will need to keep a presence there to serve it. For another, since China is now a dominant, if not sole, source, for thousands of items, reducing dependence on it in many cases will take considerable investment and time.

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