GVC vulnerability to disruption

Publisher:
Routledge
Publication Type:
Chapter
Citation:
The Routledge Companion to Global Value Chains, 2021
Issue Date:
2021-09-16
Full metadata record
Despite the benefits of modularisation and highly interconnected global value chains (GVCs), recent natural disasters have provided evidence that global supply chains can be quite vulnerable to interruptions. Risks in supply chains leading to interruption are not limited to natural disasters and can include fires and financial ruin (see Natarajarathinam et al., 2009). Simchi-Levi et al. (2014) have recently suggested it is the low-end commodity producers that expose highervalue system integrators to the greatest risks. For example, the Thai floods in 2011 disrupted electronics and auto supply chains across the globe – particularly affecting hard drive supplies (Tibken, 2011). Likewise, the Japanese earthquake in 2011 disrupted auto production from Japan to North America to Sweden (Glinton, 2011), as discussed in a National Public Radio interview between Glinton (interviewer) and Handler (auto industry expert).
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