The soaring energy prices caused by Russia’s invasion of Ukraine have plunged the energy sector into a state of crisis. Europe, which ordinarily sources almost 40% of its gas from Russia, is particularly vulnerable. The price of natural gas in Europe has seen a tenfold increase since the start of 2021. Beyond soaring energy prices and the horrendous humanitarian crisis in Ukraine, the rest of world will suffer from the ripple effects of Russia’s war. Russia’s war is sending shockwaves through the global economy, reverberating across the intricately intertwined global supply chain. Organisational leaders cannot ignore the impact of such ructions on their own business operations and people. The first type of supply chain risk derives from the fact that modern manufacturing requires the orchestration of an innumerable variety of inputs that are non-substitutable. In the last two years, the world has experienced a severe disruption in the semi-conductor sector due to factors ranging from shifting demand, labor shortages due to Covid-19-related lockdowns and even a drought in Taiwan.
Full story : Global Supply Chains Face Disruption Following Russia’s Invasion Of Ukraine.
