- Written by Mattias Hedwall, Global Head, International Commerce and Trade, Baker McKenzie
Is there a HVAC parts & equipment crisis looming ahead?
"Radically changing an existing supply chain is not as easy as it may sound, as creating a robust and secure supply chain will still need to balance the demands for cost efficiency. At the same time, new logistics considerations may also have an impact on supply chains and the changes thereto. In the near term, it is expected that companies will begin seeking out a more diversified supplier base, while looking to develop a flexible, but cost efficient, supply chain. For the longer term, however, companies will need to undertake a more holistic analysis, which may lead to more drastic changes, such as moving supply chains nearby, or to different countries, as well as increasing the digitalizing of supply chains, with a view of creating a more sustainable operation for the future. A holistic analysis should be based on facts and include the modelling and testing of different scenarios. Change scenarios should also include a contingency plan that provides for the possibilities of having to quickly revert and adjust elements of the supply chain."