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The View | Behind the global supply chain crisis is a simple case of hubris
- While many claim to have identified the reason for the logistical disruptions, the true cause is that most human of errors – believing the past will simply repeat itself
- Because today’s supply chains are global, efficient and more perilously constituted than before, new risk mitigation systems are needed
Reading Time:4 minutes
Why you can trust SCMP
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We see it in the news nearly every day: container ships clog ports, Christmas decorations unable to reach stores in time, car dealers pace empty lots awaiting inventory. The breakdown of the global network of trade that supports manufacturing and consumer purchases has arrived. But from where?
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Know-it-alls eagerly claim to have identified “the” cause – the pandemic, oil prices, inflation, energy shortages in China, or any of the policies being debated in national legislatures. These explanations are all self-deceptions.
Instead, the true cause is the most human of errors. We mistakenly believe that past experience will be repeated. Also, we like to take the most efficient path, even if that comes with greater risk.
Trading systems have circular dependencies that cannot be reliably anticipated, and are often only revealed after a sequence of usually mundane occurrences. These stress the system and are exacerbated by cunning middlemen, selfish hoarders and the clumsy material handlers. Only then does a crisis ensue.
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Global supply chain crisis bites in US cities as store shelves empty with rising demand
Global supply chain crisis bites in US cities as store shelves empty with rising demand
A crisis always illuminates our need for change; in this case, how we have managed – or mismanaged – modern supply chains.
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