Ryan Banerjee, Michael Chui and Leonardo Gambacorta
Key takeaways
- Resilience measures should match the vulnerability: alternative capacity and technologies can address persistent dependencies, while inventories, supplier redundancy and geographical flexibility can cushion temporary disruptions.
- Concentration and limited substitutability can turn the efficiency gains from global supply chains into vulnerabilities. However, the consequences of chokepoints depend on their underlying nature.
- The rare earths industry illustrates a persistent dependence on concentrated processing capacity. By contrast, flexibility and effective crisis management can speed up recovery from a temporary disruption, as seen in hard disk drive production after the 2011 Thailand floods.
Πηγή: BIS