Chan Chun Sing

The Truth Behind Supply Chain Resilience Strategies

Friend-shoring, near-shoring, and on-shoring may not be as resilient as they seem. Dive into the details at straitstimes.com!

In today's interconnected world, the concept of supply chain resilience has become a critical factor for countries. Chan Chun Sing, a prominent figure in Singapore, emphasizes the importance of staying interconnected to prevent the fragmentation of supply chains. However, strategies like friend-shoring, near-shoring, and on-shoring could be creating an illusion of resilience. Despite the perceived benefits, these approaches may not withstand unexpected disruptions effectively.

Friend-shoring, the practice of relying on close partners for supplies, may lack the diversity needed to tackle supply chain vulnerabilities. Near-shoring, bringing production closer to home, could still face challenges if critical components originate from distant regions. On-shoring, the act of localizing production, might not always guarantee faster response times during crises. It's essential for countries to strike a balance between these strategies to build robust and truly resilient supply chains.

Interestingly, a study shows that countries with diverse trading partners are better equipped to handle supply chain shocks than those with limited connections. Additionally, maintaining a balance between global integration and local production is key to achieving long-term supply chain resilience. The next time you hear about friend-shoring or on-shoring, remember that true resilience lies in maintaining a well-connected and adaptable supply chain network.