{"id":74789,"date":"2020-12-30T18:16:50","date_gmt":"2020-12-30T12:46:50","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=74789"},"modified":"2020-12-31T11:04:14","modified_gmt":"2020-12-31T05:34:14","slug":"resilient-supply-chains","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/resilient-supply-chains\/","title":{"rendered":"Importance of creating Resilient supply chains"},"content":{"rendered":"<p><span data-contrast=\"none\"><strong>Synopsis:\u00a0<\/strong><\/span><span data-contrast=\"none\">The Covid-19 pandemic once again proved the importance of creating resilient supply chains that can survive the tough times.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\"><strong>Introduction<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Creating supply chains that can withstand the disruptions is extremely important. Disruptions through the times\u00a0is\u00a0something inevitable as it can be manmade or\u00a0natural.\u00a0For\u00a0example,\u00a0The\u00a0Tahoka\u00a0Earthquake of 2011, followed by the Tsunami, led to a nuclear disaster caused a sharp drop in Japanese automobile exports to the United States.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\"><strong>State some examples of supply chain disruptions around the world<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">To avoid global disruption in the supply chain system, the robust framework is required. Causes of Supply Chain Disruption can be natural or man-made.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\"><strong>Saudi Arabia\u2019s oil refineries were<\/strong><\/span><span data-contrast=\"none\">\u00a0attacked by terrorist drones resulting in a drop of 5.7 million barrels of oil per day. This caused a sudden fall in Saudi Arabia\u2019s stock market and a rise in global oil prices.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>China cut off exports of rare earth to Japan\u00a0<\/strong><\/span><span data-contrast=\"none\">after the arrest of their fishing trawler captain in 2010 near the disputed\u00a0Senkakuislands by the Japanese officials.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Coronavirus had an immediate effect on supply chains emanating from China.<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>The United\u00a0States\u00a0<\/strong>government-imposed restrictions<\/span><span data-contrast=\"none\">\u00a0on the export of microchips to China\u2019s biggest semiconductor manufacturer.\u00a0The US\u00a0felt that there was an unacceptable risk that equipment supplied to it could be used for military purposes.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\"><strong>How vulnerable is India to this disruption?<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">China has weaponised its trade and investment. Indias\u2019 dependency on china for the following makes it vulnerable to supply chain disruption for many imp. Goods and services in the near future;\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\">India\u2019s pharma sector depends on China\u2019s Active Pharmaceutical Ingredients (APIs). It creates vulnerabilities in the value chain.\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>India imports 27% of its requirement of automotive parts from China and<\/strong><\/span><span data-contrast=\"none\">\u00a0after the pandemic it faced a huge difficulty given the sudden shortage of braking components, electrical components, interiors and lighting fixtures.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>India has an import dependency of 80%<\/strong><\/span><span data-contrast=\"none\">even after becoming the 4<\/span><span data-contrast=\"none\"><sup>th<\/sup><\/span><span data-contrast=\"none\">\u00a0largest market in Asia for medical devices. Among the biggest exporters to India in this field are China, the U.S., Germany, Singapore and Japan.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\"><strong>What are the steps taken by India and other countries to ensure SCR?<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\"><strong>The Supply Chain Resilience Initiative (SCRI)\u00a0<\/strong><\/span><span data-contrast=\"none\">was started by India, japan and Australia which tends to focus on automobiles and parts, petroleum, steel, textiles, financial services and IT sectors.<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>Japan aimed at diversification of investments\u00a0<\/strong><\/span><span data-contrast=\"none\">to the Association of Southeast Asian Nations (ASEAN), India and Bangladesh.<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">89 Japanese companies availed subsidies to diversify out of China. Of these, 57 companies relocated to Japan, 30 to Southeast Asia and two to India.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span data-contrast=\"none\"><strong>The Indian government is providing a big boost to defence manufacturing under<\/strong><\/span><span data-contrast=\"none\">\u00a0the \u2018Make in India\u2019 programme.\u00a0It has identified a negative import list of 101 items.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>Australia has demonstrated strong political will\u00a0<\/strong><\/span><span data-contrast=\"none\">in countering uninformed Chinese sanctions imposed on its key exports of grain, beef, wine, coal and much else.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">Australia has demanded an\u00a0inquiry into the origins of the coronavirus and\u00a0advocated a strong Indo-Pacific vision.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"none\"><strong>Way forward<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">India has the capacity and the potential to become one of the world\u2019s largest destinations for investments after the pandemic gets over.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"none\">There is a terrific opportunity for foreign companies to enter into tie-ups with reputed Indian defence manufacturers\u00a0to tap into the growing defence market in India.<\/span><\/li>\n<li><span data-contrast=\"none\"><strong>\u2018<\/strong>AtmanirbharBharat\u2019<\/span><span data-contrast=\"none\">\u00a0is aimed at strengthening India\u2019s capacities to participate more robustly without being prey to supply chain disruptions.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\"><strong>SCRI can get strengthened in the future<\/strong><\/span><span data-contrast=\"none\">\u00a0after the involvement of France, though this might depend on the European Union\u2019s position and the United Kingdom has also shown interest in the SCRI.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis:\u00a0The Covid-19 pandemic once again proved the importance of creating resilient supply chains that can survive the tough times.\u00a0\u00a0 Introduction\u00a0 Creating supply chains that can withstand the disruptions is extremely important. Disruptions through the times\u00a0is\u00a0something inevitable as it can be manmade or\u00a0natural.\u00a0For\u00a0example,\u00a0The\u00a0Tahoka\u00a0Earthquake of 2011, followed by the Tsunami, led to a nuclear disaster caused a&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/resilient-supply-chains\/\">Continue reading <span class=\"screen-reader-text\">Importance of creating Resilient supply chains<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":74795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,1351,1310,9],"tags":[1354,1333],"class_list":["post-74789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-daily-news","category-daily-news-updates","category-public","tag-eco_3","tag-ir_0","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2020\/12\/Importance-of-creating-Resilient-supply-chains.jpg?fit=1280%2C720&ssl=1","views":{"total":60,"cached_at":""},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/74789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=74789"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/74789\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/74795"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=74789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=74789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=74789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}