The World\’s Worst Supply Chain Crisis: What is it and How to resolve it?

Today, an estimated 80% of the global wholesale market is concentrated in East Asia and South East Asia. China alone produces over 40% of the world’s garment and textile products. A recent study shows that in 2020, around 70% of global production will be concentrated in just a few countries, namely China, India, Indonesia, Vietnam, Bangladesh and Pakistan.


Although companies are moving their manufacturing plants to cheaper locations like China or Vietnam to save on costs, those savings are no longer guaranteed during the never-ending supply chain crisis. The recent natural disasters and political tensions have made it difficult for companies to plan reliable supply chains. In this article, we’ll explore the various issues that plague supply chains today and what can be done about them.

The dependence on China for supply chain needs has also been driven by the global nature of modern production and distribution systems, which often involve complex networks of suppliers, manufacturers, and distributors located in different countries around the world. As a result, many businesses rely on China as a key source of raw materials, components, and finished products.

However, this dependence on China has also created some vulnerabilities and risks. For example, suppose there are disruptions to the supply chain in China due to factors such as natural disasters, labour shortages, or trade tensions. In that case, it can have a significant impact on businesses and industries around the world. Some companies have sought to diversify their supply chain sources in an effort to reduce their dependence on China and mitigate these risks.



There are several steps that companies can take to mitigate global supply chain disruptions and manage crisis situations:

Diversify your supplier base

Having a diverse group of suppliers can help reduce the impact of disruptions on your business. Consider sourcing from a variety of countries and regions to reduce the risk of disruption from a single event.

Establish contingency plans

Developing contingency plans that outline how to respond to disruptions can help your company quickly and effectively manage crisis situations. These plans should include measures such as identifying alternative suppliers and transportation routes and communicating with customers and stakeholders.

Foster relationships with suppliers

Building strong relationships with suppliers can help to ensure that you have their support during times of crisis. Consider implementing supplier relationship management (SRM) practices to establish clear lines of communication and resolve issues quickly.

Use technology to manage the supply chain

Utilizing technology such as supply chain management software can help you track and monitor your supply chain in real time, allowing you to identify and respond to disruptions quickly.

Develop a crisis management team

Establishing a dedicated team to manage crisis situations can help ensure your company is prepared to respond effectively to disruptions. This team should include representatives from different departments and should be trained in crisis management protocols.

Communicate with stakeholders

Clear and timely communication with stakeholders, including customers, suppliers, and employees, is essential in managing supply chain disruptions. Keep stakeholders informed about the situation and any steps being taken to mitigate the impact.


By taking these steps, companies can better prepare for and manage global supply chain disruptions and minimize their impact on the business.

Another critical aspect worth mentioning is the infrastructure abilities of the ecosystem and the companies that operate within that ecosystem to manufacture goods and services in-house, locally. This ability is largely dependent upon the Socioeconomic and Geopolitical situation of any country in which the companies operate or sell their products to! This crucial aspect is largely controlled or steered by the governments and the decisions taken by world leaders.

Leave a Comment

Your email address will not be published. Required fields are marked *

Get 30% off your first purchase

X