20220110-德勤-Boosting_resilience_working_with_like-minded_partners_to_orchestrate_critical_supply_chains_15页_6mb

Executive Summary

Supply chain disruptions from events like COVID-19 have highlighted the vulnerabilities in modern supply chains, which are highly efficient but fragile due to decades of optimization. The report emphasizes that strategic competition between nations and the need for risk reduction necessitate rethinking supply chain practices. Friendshoring, or reorchestrating supply chains with like-minded allies, is proposed as a pragmatic alternative to full onshoring. Defense supply chains are highlighted as ideal for piloting these changes due to unique control and incentives. Key recommendations include improving supply chain visibility through data management, prioritizing critical supply chains, and fostering trusted supplier networks. A new trade vehicle within the rules-based international order is needed to facilitate this approach.

Main Insights

• Supply chain vulnerabilities stem from complex, interdependent systems that obscure risks, exacerbated by cost-focused optimization and rising geopolitical tensions.
• Friendshoring allows for balanced risk reduction without the high costs of onshoring, by leveraging alliances to diversify supply sources.
• Defense organizations possess the authority and resources to lead reorchestration efforts, minimizing unintended disruptions due to their often-monopoly status in certain sectors.
• Existing supply chains, like semiconductor networks, illustrate risks from concentration in specific regions, requiring diversification to enhance resilience.

Key Recommendations

1. Know your supply chain: Gather comprehensive data across all tiers to assess risks and vulnerabilities effectively.
2. Decide what supply chains are critical: Prioritize resources based on strategic needs and risk assessments, allowing flexibility for unpredictable events.
3. Make supply chain orchestration easy: Incentivize industry partners to adopt responsible practices, develop trusted supplier programs, and build shared supply chain talent through joint initiatives.
4. Prove the concept: Start with small-scale pilot programs to demonstrate feasibility and refine approaches before broader implementation.
5. Organize around the problem: Focus on shared risks among allies to create scalable trade vehicles that reduce dependence on adversarial partners.

The report concludes that reorchestrating supply chains is essential for resilience, with defense sectors well-positioned to pioneer this shift due to their stability and unique capabilities, ultimately benefiting both government and commercial entities.