{"id":396148,"date":"2020-12-09T07:03:27","date_gmt":"2020-12-09T12:03:27","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=396148"},"modified":"2020-12-09T07:03:27","modified_gmt":"2020-12-09T12:03:27","slug":"kkr-releases-a-new-era-for-supply-chains","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/kkr-releases-a-new-era-for-supply-chains\/","title":{"rendered":"KKR Releases \u201cA New Era for Supply Chains\u201d"},"content":{"rendered":"

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KKR Releases \u201cA New Era for Supply Chains\u201d<\/b><\/p>\n

New Report Explains Why Supply Mesh is the New Supply Chain<\/i><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nKKR today announced the release of a new KKR Viewpoints publication authored by Neil Brown<\/a> and Frances Lim<\/a>. In A New Era for Supply Chains, <\/i>Brown and Lim discuss how business leaders and investors around the world must evaluate and adapt the way they think about supply chains, particularly at a time of immense disruption to existing business models.\n<\/p>\n

\u201cOver the last year, COVID-19 lockdowns, product scarcity, limits on medical equipment and therapeutics, increasingly nationalist economic policies and heightened geopolitical confrontation, have each had significant \u2013 and largely negative \u2013 effects on conventional supply chains,\u201d <\/i>said Brown and Lim. \u201cAmidst this complexity, we believe business leaders must extend supply chain thinking beyond margin maximization to address issues of resiliency, sustainability and geopolitical risk. In our view, they must think of supply chains as less of a chain and more a mesh of interlocking inputs.\u201d<\/i><\/p>\n

\nIn the piece, Brown and Lim outline five key considerations for business leaders and investors considering supply chain design:\n<\/p>\n

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  1. Building resiliency is key to securing supply chains post-COVID.<\/b> Resiliency strategies for businesses vary and include diversification, mirroring production of critical components, stockpiling and distributing logistics nodes.\n<\/li>\n
  2. Supply chains will need to evolve as they continue to face uncertainty<\/b> from a more volatile geopolitical environment, more inward-looking national politics and increasing supranational risks such as climate change and public health.\n<\/li>\n
  3. Supply chain thinking needs to incorporate a more holistic view<\/b> \u2013 one that sees the traditional supply of goods as being embedded in a \u2018mesh\u2019 of interlocking inputs, each with its own risks and value levers.\n<\/li>\n
  4. Focus on a supply chain\u2019s critical nodes of vulnerability.<\/b> Trying to mitigate risk along every link in the broad mesh of inputs in which supply chains sit will lead to spiraling costs for greatly diminished returns.\n<\/li>\n
  5. This period of supply chain rethinking presents an opportunity<\/b> to build for a future in which supply chains adapt to the need for environmental sustainability and adoption of automation technologies.\n<\/li>\n<\/ol>\n

    \nIn their report, Brown and Lim explain that while change can always be challenging, the adjustment to global supply chains can also present opportunities for businesses and investors, including: 1) domestic and regional demand over global demand; 2) new infrastructure and logistics; 3) increasing automation; 4) continuation of China\u2019s manufacturing upgrade; 5) new emphasis on diversification; 6) greater demand for ESG solutions; and 7) increased prospects for opportunistic investments.\n<\/p>\n

    \nLinks to access this note as well as an archive of KKR\u2019s previous publications follow:\n<\/p>\n