Technology Strategy and Management Global Supply Chain Disruption and Resilience

ABSTRACT

Sako asserts that more and more people are keenly aware of the disruption in global supply chains in recent months, as their daily lives are affected by supply shortage and longer lead times for receiving deliveries of a wide range of products, including new phones, game consoles, and cars. We are also told supply chain disruptions are not about to end but will exist for some time to come. It is therefore worth understanding what has thrown global supply chains into disarray, in what ways the COVID-19 pandemic has played a part, and what will become of global supply chains in the future. In short, the pandemic accentuated preexisting strains in global supply chains and the need to become more resilient to future disruptions. By the 2010s, the geopolitical climate shifted to neo-nationalism and protectionism, causing disruptions in global supply chains. With respect to protectionism, the U.S. imposed 25% tariffs on semiconductor and capital equipment in June 2018, leading ironically to raising U.S. manufacturers' cost of production.