In GreenBiz, Guidehouse discusses how local sourcing could make supply chains more resilient
As the world finds unprecedented responses to the coronavirus pandemic, the impact on supply chains reveals how fragile and intertwined most of them are. The supply chain disruptions particularly highlight the global sourcing for components that comprise consumer goods.
In an interview with GreenBiz, Noah Goldstein, director at Guidehouse, explains why the pandemic offers the opportunity to rethink supply chains and recognize the value of local sourcing.
It may be economically cheap to transport items across the globe, but it is very costly in greenhouse gas emissions.
"When COVID-19 comes around, disrupting that flow of goods around the world, we are faced with a reckoning that the ‘cheap’ goods may not be so cheap after all. If there are no parts to put together, not being able to sell a product makes it infinitely expensive," said Goldstein.
This is why companies taking the right measures now stand to gain twice: by simultaneously rendering their operations more financially resilient and climate-friendly.
"Coronavirus is forcing us to look into supply chains, and it will be a good time to use that reflection as an opportunity," Goldstein said. "An opportunity to look at local supply chains. An opportunity to evaluate the resilience in the supply chain. An opportunity to look at the embedded carbon in the supply chain."