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Pandemic quickens diversification of supply chains beyond China

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13 July 2020

Pandemic quickens diversification of supply chains beyond China

Report summary

The COVID-19 pandemic has hit global trade and supply chains at an unprecedented speed and scale. Business first faced a supply shock, then a demand shock due to containment measures. The pandemic has particularly exposed the vulnerabilities of global supply chains built on lean manufacturing principles and reliance on China – the world factory. The growing need for a “de-risking” strategy, namely geographical diversification and vertical integration, has become one of the main lessons of the pandemic crisis.

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    Pandemic quickens diversification of supply chains beyond China

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