Supply chains need to be reinvented for resilience

Published: Wednesday, 25 May 2022 09:38

A new Accenture report, 'From Disruption to Reinvention – The future of supply chains in Europe', published at the World Economic Forum’s Annual Meeting in Davos looks at how supply chain disruptions are likely to play out across Europe. It states that supply chain challenges arising from the COVID-19 pandemic and Russia’s invasion of Ukraine could result in a potential €920 billion cumulative loss to gross domestic product (GDP) across the Eurozone by 2023. The potential loss equates to 7.7 percent of the Eurozone GDP in 2023.

The report explores three possible scenarios for how the war could play out over the coming year, modelling the impact of each scenario on the Eurozone region in terms of costs and timelines for recovery.

Reinventing supply chains in a new economic order

The report suggests that a reinvention of supply chains is required to address a paradigm shift - supply chains were designed mainly to optimize costs, while in today’s world, they must also be more resilient and agile to respond to increasing supply uncertainties, while becoming a key competitive advantage to enable future growth.

A focus on three key areas is highlighted:

Read the report