Oneoftheclearesttrendsininternational
tradeduringthepandemichasbeenthe
shiftawayfromefficiencytoresilience,from
“justintime”to“justincase”.Amidsupply-
chaindisruptions—fromthemicrochip
shortageintheautomotiveindustrytothe
riseincommodityprices—companieshave
diversifiedtheirsupplierbase,purchasing
bufferinventoriesfromsuppliersthatmay
bemoreexpensive.
Someofthesecostsarebeingpassedon
totheconsumerintheformofhigher
prices,contributingtotheinflationary
environment.Highertransportcostsare
alsoexpectedtobea topchallengein
2022,accordingtoa globalsurveyledby
EconomistImpact.Giventheredundancies
thisbuildsintoa business,whatnew
sourcesofsupply-chainefficiencycan
executivesturnto?
Findoutmoreattradeintransition.economist.com.
Supported byTrade in
Transition 2022
ThesecondeditionofEconomist Impact's
TradeinTransitionprogramme, supported
byDPWorld,presentsviews from over 3,000
executivesworldwide,revealing their priorities
astheyseeknewcustomers and suppliers. While
48%ofexecutivessaythey are diversifying their
supplierbaseregardlessoflocation, only 12%
saytheyareregionalising.Across sectors—from
consumergoodstohealthcare—companies are
increasingtheiradoptionof 5G technologies,
digitalsolutionsatcustoms and advanced
automationtostreamlinetheir trade operations.
Theyarealsoimplementing sustainability
initiatives,notonlytoreduce waste but to
secureaccesstokeymarkets.Theagilitythatcompanieshave demonstrated
duringthepandemicis likely to prove necessary
astheysteerintouncharted waters. How can
businessesstayagileinanincreasingly uncertain
tradingenvironment?How are companies trading in an
infl ationary environment?
ADVERTISEMENT