Geopolitics Reshaping Supply Chains: Insights From Industry Leaders

In recent times, the global supply chains have faced disruption with conflicts erupting in different corners of the world from the Russia-Ukraine war to the recent Hamas-Israel conflict. The repercussions of such geopolitical events on supply chains have a huge impact. For instance, In the year 2022 Russia-Ukraine war has lowered India’s GDP growth rate by one per cent as per the global investment firm Morgan Stanly.

A part of the rising conflict is the competition between major nations, particularly the Western bloc and China, After the Covid-9 origin conspiracy. Companies finding place to re-establish themselves in other locations reevaluating their presence in China amidst challenges and constraints related to technology access and the movement of goods. Geopolitics, far from easing, is anticipated to maintain its disruptive influence on supply chains.

Adding to the newer idea of sustainability. In simple terms reduction of carbon footprint to zero to save this planet from high temperatures. The global nations have set their targets and India has promised net zero emissions by 2050. This commitment puts necessity on the private, corporate and public organisations to cut emissions. 

Innovation Is Solution

In the midst of all this Ravi Srivastava, Senior Partner & MD and Lead Global Operations Practice, BCG said “The one key factor the companies should always rely upon is innovation in technology, product and supply chain.” 

Explaining innovation in finding new supply chains by expanding the network from not depending on a single source, in case of product micro-management from the sourcing the raw materials, energy used for manufacturing and delivering the end product to the customer, he added.

Stressing on the same Pavan Choudary, Chairman & Director General, MTaI and Managing Director, Vygon India said “There was a popular notion in the 1990s that copper reserves will run out in 10 years even today it didn’t. Because the ways of extracting copper became more and more efficient with technology.” Highlighting this he said innovation is very important to find alternatives to things to meet the demand.

Shedding the light on Alternate fuels

Energy is the key component for manufacturing and this is the major contributor to greenhouse emissions. Currently, India diversifying its energy needs cutting out the dependence on coal majorly focusing on green hydrogen. Getting deep into the policy Navjit Gill, CEO, Gentari India said “The country can use renewable energy like green hydrogen, ammonia and other downstream derivatives, as green energy.”

Diversifying The Supply chains

The medical device industry, speaking particularly about skin care i.e., the dermatology industry Sanjay Bhutani, Managing Director - India & SAARC, Bausch & Lomb India explained the challenges faced by the industry He said, the industry shifted its manufacturing strategies, with a focus on configuring networks toward countries with lower risks, even if it means sacrificing some profit margins, he added.