The Russian invasion of Ukraine will snarl supply chains even more. Per Interos, about 4,000 U.S. and European firms have Tier 1 suppliers in Russia or Ukraine, while >300,000 firms have Tier 2/Tier 3 suppliers there.
Top supplier relationships include software/IT services, consumer services, trading/distribution, industrial machinery, oil, gas, steel and metal products. Impacts will be driven by higher oil and natural gas prices, rising rates for ocean and air freight, higher electricity prices, and concerns about cyber warfare. Raw material and commodity supply chains will also be hit since both Russia and Ukraine are top tier agricultural exporters, and Russia is a significant producer of copper, nickel, platinum and aluminum.
Supply chain strains will continue, but MOSIMTEC simulation modeling can help. Test each tier in your supply chain virtually to identify risks. Explore ways to prevent/mitigate those risks. Evaluate options, backup plans, alternative suppliers, substitutes, reshoring and more in a sandbox environment before making real world changes. Develop plans to tackle supply chain problems before or when they fester. MOSIMTEC industrial engineers and data scientists can help you futureproof your business. Learn more about our supply chain simulation related work here: https://mosimtec.com/industries/logistics-supply-chain/
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Read more here: https://www.forbes.com/sites/stevebanker/2022/02/24/the-russia-ukraine-war-could-have-dire-impacts-on-global-supply-chains/?sh=5fbc310e4919