The development of supply chains linking the world's major economies has been overshadowed for several decades by growing geopolitical and economic disputes. Competitive prices and speed of delivery from Asian countries caused companies from highly developed Western European countries to shift some production to Asia stretching supply chains; while ensuring a steady supply of needed components. The collapse of the supply chain due to the COVID-19 pandemic and the aftermath of the war in Ukraine showed the weaknesses of such an arrangement. This leads to rescaling existing supply chain models and a change in approach to existing business models.

Paweł Frankowski

KBN Analysis No. 19 (114) / 2022

15 December 2022

The development of supply chains linking the world's major economies has been overshadowed for several decades by growing geopolitical and economic disputes. Competitive prices and speed of delivery from Asian countries caused companies from highly developed Western European countries to shift some production to Asia stretching supply chains; while ensuring a steady supply of needed components. The collapse of the supply chain due to the COVID-19 pandemic and the aftermath of the war in Ukraine showed the weaknesses of such an arrangement. This leads to  rescaling existing supply chain models and a change in approach to existing business models.

Picture credit: Wikimedia