Template-Type: ReDIF-Article 1.0

Author-Name: Róbert Hausmann
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: hausmannr@mnb.hu

Title: Transformation of Global Supply Chains in the Manufacturing Industry as a Result of the Coronavirus Pandemic

Abstract: This essay seeks to find out how the coronavirus pandemic may change
the international organisation of economic value creation and promote its
ongoing transformation. Today’s production and service activities are built on
international outsourcing and low stocks. Global production organisation has
extended supply chains, with different production functions being performed
on different continents, and supply chains have also become strongly exposed
to Chinese imports. Industries where safety stocks last shorter are hit harder by
the economic crisis that has emerged on the back of the pandemic. This poses
serious challenges to business models built on the just-in-time system and the
lean approach. In response to the current problems, global supply chains may
become shorter and more regional during the economic recovery, and they may
use multi-sourcing and increase safety stocks. Digitalisation and automation
may accelerate, since supply chains will need more data, faster decisions and
feedback to ensure a more flexible safety stock policy and more automated
production and warehousing. Automation also transforms jobs, making it crucial
to develop the skills of workers and to retrain them.

Classification-JEL: M21, O33, F60
Keywords: global supply chains, digitalisation, robotisation and automation, business economics, coronavirus pandemic
Pages: 130-153
Volume: 19
Issue: 3
Year: 2020
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-19-3-e1-hausmann.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:19:y:2020:i:3:p:130-153