This is your weekly supply chain bulletin from B2BE for the week starting 16th January 2023.
Each week, we bring you a rundown of the latest trends in the news from across the supply chain industry. We cover the issues most important to you, bringing you useful links to the full articles. This ranges from news on various supply chain disruptions to strategies to lessen the damage. We also include other relevant supply chain related updates. If you missed it, you can read last week’s supply chain bulletin here. Read on to see what’s making the news this week.
Government comments on supply chain resilience issues call for engagement with industry heads
Recent government comments about combatting supply chain and resilience issues have led to calls for engagement with industry heads. The calls follow a season of empty shelves in shops and supermarkets. The government shared that the matter of resilience is taken very seriously, and shares that ‘close dialogue’ was being maintained. However, industry leaders said there had been little to no engagement with industry leaders who branded the government’s comments as ‘misleading’.
Is the automotive industry the next to cut ties with China in supply chain shake-up?
International car groups have launched a quiet effort to cut reliance on China’s network of component makers. Prompted by uncertainty created by China’s zero Covid-19 policy that forced plants to close at short notice and the longer-term concern about a larger political decoupling in the event of a breakdown in China’s relations with the international community, similar to Russia, that could threaten trade.
German businesses are fretting about new supply chain regulation
A new law requires businesses with more than 3,000 employees in Germany to monitor their suppliers around the world to ensure they meet human rights and environmental standards. As a result, misbehaviour could lead to fines of up to €8m or 2% of the German firms’ global sales, whichever is higher. German business owners have warned that this new regulation is putting their businesses at a disadvantage, creating more red tape and harming workers in emerging markets.
Should supply chain businesses be ready for a transformation?
Over the last few years, supply chains have undergone a huge transformation change, but experts predict the transformation is far from over. Recent studies by Capgemini predicts a shift of 25% of global trade within three years. Currently, 57% of goods are sourced abroad, versus 43% domestically, which will switch to in-country accounting for 57% of procurement.
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