Deglobal Blog Presentation

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Post-COVID-19 Global Supply Chain Deglobalized
or Decoupled?
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• INTRODUCTION
• MELODY BENABOU

DR. NICK VYAS
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Guest Presenter Dr. Nick Vyas

• Executive Director and Co-founder of Center for
  Global Supply Chain Management (CGSCM) at USC
  Marshall
• Educator, thought leader, author, keynote
  speaker, and advisor to leaders in the worlds of
  supply-chain practice and policy
• In 2018, Dr. Vyas was bestowed the Supply Chain
  Leader Award of Excellence by APICS
• Founder, Supply Chain Professionals without
  Borders (SCPWOB)
• Contributor, Supply Chain Management Review
  (SCMR), NPR, KCRW, CBS News, The Economist, and
  the LA Business Journal
• Member, U.S. Department of Commerce Advisory
  Committee on Supply Chain Competitiveness

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Questions?
Please submit questions using the Questions
option on the GoToWebinar panel
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US-China Trade War
CHINA
The China Shock
Chinas growing economic influence is
exacerbating Americas wage gap.

• Economic ascent began in 1990s.
• Growth in share of manufacturing exports from 6
  to 18
• USAs share decreased from 18 to 9

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US-China Trade War
CHINA

• In 2018,
• Worlds biggest goods exporter (2.49 trillion
  exports)
• US was in second place with 1.7 trillion exports
• In 2013,
• Surpassed U.S. as most significant trading
  nation.

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US-China Trade War
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US-China Trade War
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US-China Trade War
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US-China Trade War

• In addition, China is a leader in
• Fintech, big data, artificial intelligence,
  e-commerce, cloud computing, and ICT exports.
• BUT, the US-China trade war has made serious
  dents into this growth story.

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US-China Trade War
USA
Our Economic Growth

• Apart from an economic growth of 6.1
• US-linked manufacturing is shifting away from
  China.
• Vietnams US-bound exports surged to 36 (last
  July)
• Mexico and Canada are USAs 1 and 2 trading
  partners
• In short, trade tensions are reshaping global
  supply chains away from China.
• Then, COVID-19 struck.

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COVID-19
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DECOUPLING, NOT DEGLOBALIZATION
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Decoupling, not Deglobalization
The overall impact of COVID-19 is unclear.

• But, one thing is clear
• The economic implications are going to be bigger
  than ever.
• The combined impact of COVID-19 and its cure is
  going to have far-reaching implications for the
  global economy.

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Decoupling, not Deglobalization
GLOBAL SUPPLY CHAIN

• THE PAST
• Deglobalization
• Global supply chains look different because of
  deglobalization.
• Now, COVID-19 has led experts to predict the
  third wave of deglobalization.

• THE FUTURE
• Decoupling
• BUT, we will see a decoupling of
• global supply chains.
• Instead of interconnected supply chain nodes, we
  will have regionally concentrated supply chain
  networks
• Each connected with other regional supply chain
  network through a decoupling point.

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Reasons Why Global Trade Will See a Decoupling,
not Deglobalization

1. Deglobalization is not feasible.
2. Declouping solves heavy reliance on China without
   marginalizing China.
3. There is already a legacy in place that provides
   a blueprint for decoupled supply chain networks.

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Decoupling, not Deglobalization
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Reasons Why Global Trade Will See a Decoupling,
not Deglobalization

1. Deglobalization is not feasible.
2. Declouping solves heavy reliance on China without
   marginalizing China.
3. There is already a legacy in place that provides
   a blueprint for decoupled supply chain networks.

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Reasons Why Global Trade Will See a Decoupling,
not Deglobalization

1. Deglobalization is not feasible.
2. Declouping solves heavy reliance on China without
   marginalizing China.
3. There is already a legacy in place that provides
   a blueprint for decoupled supply chain networks.

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Decoupling of the Supply Chain

• Decoupling of the supply chain is the only way to
  build resilience and agility into supply chain
  networks.

• Will it be easy or cheap?
• No, but it needs to be done.

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The Future for Supply Chain
In a perfect future,

• Supply chain networks will be customer-centric,
  built atop digitized platforms, and
  interconnected through decoupling.
• We must integrate emerging technologies to
  capitalize on the digital frontier, which is
  efficient, effective, resilient, and
  eco-friendly.

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ABOUT US
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Who Is NexInfo?

• SUMMARY
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