How the pandemic has reinvented trade

How the pandemic has reinvented trade

Covid-19 proved to be the most devastating setback the world collectively experienced in over a century. Yet every crisis brings with it a new dawn, new hope and new opportunities to help us emerge better and stronger. In the realm of global trade, the pandemic reignited corporate appetites to improve supply chains. Over the last year and a half, buyers have sought greater inventory buffers and insulated supply networks to enhance protection against future disruption as they recognised that the current pandemic might not be the last macro-scale shock to global trade. Shocks to supply chains are frequent, as illustrated by the blockage of the Suez Canal earlier this year by a container megaship. McKinsey & Company estimates that companies experience a shock that leaves them inactive for a month every 3.7 years. Data from DP World’s report clearly shows that 83 per cent of businesses polled have invested in reconfiguring their supply networks. They are switching locations to improve the production or purchasing outlook and seeking to shorten their supply chains. Digitalisation also leads to increased visibility that helps manufacturers manage procurement while suppliers can track real-time updates on order backlogs for more accurate inventory organisation. The demand for