The supply chain, affected by the war in Ukraine

The challenges facing the supply chain stemming from the pandemic and the Russian invasion of Ukraine could lead to the loss of €920bn of GDP in the Eurozone by 2023. Which translates to 7.7% of GDP from the euro zone.

This is confirmed by the report “From disruption to reinvention: the future of the supply chain in Europe” by Accenture, which highlights that inflationary pressures put the economic recovery in Europe at risk.

“Although experts believe that Europe will avoid recession this year, the combination of COVID-19 and the war in Ukraine has the potential to significantly impact Europe’s economy, causing a slowdown in economic growth,” says Jean-Marc Ollagnier. , CEO of Accenture in Europe.

Reinvent the supply chain

Solving supply chain problems will be essential for Europe’s competitiveness and growth. According to the report, up to 30% of the eurozone’s total added value depends on the functioning of cross-border supply chains, either as a source of raw materials or as a destination for production.

The supply chain must reinvent itself after the impact of the Ukraine war

He also points out that a reinvention of supply chains is required to address a paradigm shift. Highlighting three key areas:

• Resilience: Supply chains must be able to absorb, adapt and recover from disruptions when and where they occur. Improved dynamic visibility, risk identification and mitigation solutions will enable companies to respond to sudden changes in the supply chain. Scenario planning and risk and opportunity analysis will help them adapt to changing supply and demand. Simulations, stress tests and multi-resource options will allow organizations to manage uncertainty.
• Relevance: Supply chains will need to be customer-centric and agile so they can quickly and cost-effectively adapt to changes in demand. It will be critical to collect new data, including real-time data, from inside and outside the organization and across the value chain. Automation and artificial intelligence will enable organizations to quickly identify new data patterns to better inform decision making. Moving from centralized, linear supply models to decentralized networks that use production on demand, and in some cases moving production closer to the point of sale, can help organizations better meet customer expectations for fulfillment. of the orders.

• Sustainability: Modern supply chains must support and accelerate the sustainability agendas of organizations. To gain the trust of stakeholders, organizations need to make their value chains transparent and one way to do this is through blockchain or similar technology. A shift from linear processes to circular, closed-loop processes that minimize waste is also key.