Shedletsky’s article discusses why electronic supply chains, especially chains who sells into the US, are staying put after tariffs imposed by the US and combating the pandemic. The US aims to pressure companies to move their supply chains out of china with the imposition of these tariffs. Some companies have responded by moving small parts of their supply chains. Most have stayed put for now because of the on going pandemic.

Manufactures are more concerned with risk when it comes to making choices affecting their supply chain. Shedltsky evaluated virus risk, partner risk, and socio-political risk of supply chains. Virus risk shows mass shutdowns be very unlikely since China has been able to maintain strong control of the virus and preventing it from spreading. Switching partners is very risky because it is very difficult with restricted travel. New partners would have to meet and take tours of the factory. Socio political risk is broad from tariffs to political relationships, causing uncertainty.

Supply chain leaders have been mostly concerned with execution risk. They are aiming to make new programs be successful through adapting to challenges of restricted travel and remote collaboration in real-time. As a student studying analytics, I believe we have to learn to adapt to the “new world” that has been created because of the pandemic. Adapting to change plays a big role in a company longevity.

 

Electronics Supply Chains Are Staying Put In China, For Now

https://www.forbes.com/sites/annashedletsky/2020/11/06/electronics-supply-chains-are-staying-put-in-china-for-now/?sh=4314d0565344

E-mail me when people leave their comments –

You need to be a member of UNH Economics Collective to add comments!

Join UNH Economics Collective