MULTINATIONAL FIRMS have come a long way in the decades since the emergence of supply-chain management. A sclerotic and retrospective set of disjointed processes has formalised into a proper discipline. Decisions based on gut instincts and relationships are increasingly made using data. As a result, supply chains are getting shorter, faster and smarter.
Unfortunately, they are not yet getting much safer. This matters because the world economy is becoming more dangerous for MNCs. Global supply chains are facing three immediate threats today: the Huawei problem, cyber-security attacks and tariff wars. Tomorrow’s threats, which include climate change, could be worse.
What should firms do in response to American hostility towards Huawei? MNC bosses must balance security concerns and the need to follow American law against cost pressures and a desire to retain access to Chinese innovations and consumer markets. Though President Donald Trump indicated on June 29th that he would loosen restrictions on sales of American technology to Huawei, the Chinese firm remains a legal pariah. Its activities…
