Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

PLUS+ Customer Service Support


Customer service for all PLUS+ subscribers is available Mon-Fri, 9am-5pm Eastern time.

Email: [email protected]
Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)
Mail: PO Box 1496, Framingham MA 01701-1496, USA



You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

Globalization vs. Protectionism – A Need for Supply Chain Resiliency

The protectionists would argue that the world's current financial and economic woes can be attributed to globalization, particularly to the proliferation of free trade agreements and countries de-valuing their currencies to gain export advantages.

By ·

Latest News

Third Party Risk: Too Close for Comfort
The State of the DC Voice Market
DHL launches Global Trade Barometer
Get the lay of the land with Modex 2018 show map
Breaking Through On Yard Visibility
More News

Latest Resource

Third Party Risk: Too Close for Comfort
You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
All Resources
By ·

Editor’s Note: Dave Kipe is Senior-Vice-President of Global Operations for Scholastic. 

The last decade has been a march towards globalization, but recent political and economic events have created a backlash and stirred the debate; globalization vs. protectionism. The protectionists would argue that the world’s current financial and economic woes can be attributed to globalization, particularly to the proliferation of free trade agreements and countries de-valuing their currencies to gain export advantages.

Domestically in the US, the movement towards protectionism has been rooted in survival.  In the early 1990s the United States accounted for 30% of manufacturing output, retaining the position as the world’s leading industrial producer that it had held for almost a hundred years. At that time China produced only 5% of global manufacturing output. 

Today that position has completely reversed. China produces 25% of manufacturing output and the US only 15%.  These changes are just part of the reason protectionism is gaining speed, but regardless of your political or socio-economic opinion; we as supply chain leaders need to remain resilient and prepared for abrupt change.

Here are a few steps supply chain leaders and manufacturers can take in preparing for this change:

  • Evaluate your existing and future customer footprint and map it against your existing manufacturing and supply chain capabilities.  You might be surprised at the disconnect.
  • Re-calibrate operational costs and capital costs and completely reshape existing assumptions.
  • Research and examine advanced manufacturing technologies, including AI, robotics, and automation, and interpret the impact on your infrastructure and customer service model.
  • Proactively try to rebuild your declining supply-chain ecosystems, but collaborate with your customers and peers to optimize ideas and technologies. 
  • Engineer your supply chains to be resilient to future inevitable changes and instabilities in government regulations, trade policies, and exchange rates.

Additionally, it’s important that we don’t paint the global supply chain with broad strokes.  When we talk about complex supply chains, we must remember how varied they can be; relative on what they produce, how they produce, and where they produce.  The variety adds complexity, and needs to be taken fully into account in analytical terms. But supply chains also have much in common, especially when we try to understand how they are affected by rapid change, and in this context; the movement from globalization to protectionism. 

The one constant is uncertainty.  Connected international supply chains mean an end to the old assumptions. It has been taken for granted almost since the first intellectual stirrings of economics as a science that cutting the value of your currency makes your exports cheaper so you can sell more. But not anymore as the last British pound devaluation has shown. In many exports, the import content is so high it pushes up the price of the assembled final product almost as much as the currency depreciation is supposed to cut it.

It also hints at a greater truth which is that in the modern sophisticated just-in-time world, price is often less important than quality, design, after-sales service, speed and reliability of delivery.  Socio economic and political pressure may alter how we manage and sustain our supply chains, but in a ferociously competitive world where over-capacity exists in most industries, it is unlikely to overcome the law of economics.

 

 


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Latest Whitepaper
Third Party Risk: Too Close for Comfort
You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
Download Today!
From the December 2017
This is a comprehensive guide to services, products and educational opportunities targeted specifically to supply chain professionals. As with years past, we’re also featuring several articles we trust will offer food for thought in your supply chain throughout the coming year.
Transportation Trends: The last mile, history repeating
Economic Outlook: A Complex and Uneven Scenario for Global Supply Chains
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
The Perfect Formula for Determining the Right Amount of Inventory
This webcast explains how the science of theoretical minimums, a new approach to inventory optimization, provides a simple and elegant way to reduce cost and increase customer service levels by monetizing time delays across the extended supply chain.
Register Today!
EDITORS' PICKS
Atradius Issues New Report on Supply Chain Risk in North America
The U.S. shows strong economic performance, but the looming risk that leadership in Washington will...
2018: The year we make meaningful progress on digital transformation
Perhaps it would have been better to describe it as a digital evolution – more of an ongoing...

Industrial and Supply Chain Real Estate Expected to Soar in 2018
Strong economy and insatiable demand for online shopping behind industrial real estate resurgence
Ongoing Supply Chain “Disruptions” Indicated in Latest Ti Survey
According to Logistics Surveys 2017, the express industry has already undergone transformation, not...