Even though the last few years have witnessed decrease in world trade volume, Better Supply chain is a need that will only grow with time.
An open world of fast-moving markets and technological change is scary. One answer is to close it down. Populists would like us to believe we should shut down our borders.
But, we cannot close the borders to trade.
Growth of long supply chains as a result of globalisation.
For thousands of years, world trade was minimal compared with today’s levels. Between the 1950s and 2000, world trade grew at an average of 5–6% per year. Then between 1990 and 2000, the rate of growth accelerated to 8–9%, and from 2000 to 2008 it doubled again to 17–18%.
World trade volume today is roughly 40 times the level recorded in the early days of the GATT.
World trade values today have ballooned by almost 300 times from 1950 levels. Last few years have seen a decrease in world trade volume, but the overall trend is clear.
And with greater volume will become even more important that companies get supply chain leaders who understand the overall impact of their actions.
Supply chain is no more only logistics.
