How the War in Ukraine Is Further Disrupting Global Supply Chains


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The invasion of Ukraine by Russia and sanctions imposed on it for doing so and new pandemic-related shutdowns in China are the latest events to rock global supply chains.Combined with the war and other pandemic- and climate-related disruptions, it is certain to accelerate the movement by Western companies to reduce their dependency on China for components and finished goods and on Russia for transportation and raw materials and to lead to more localized, or regional, sourcing strategies.If China decides to back Russia in the Ukraine conflict, it would only fuel that movement.

Read more on Operations and supply chain management David Simchi-Levi is a professor of engineering systems at Massachusetts Institute of Technology and the head of the MIT Data Science Lab.

Pierre Haren is the CEO of the fintech start-up Causality Link.He cofounded ILOG, a leading provider of optimization engines and business rules, which was bought by IBM in 2008.

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