{"id":35387,"date":"2022-07-27T00:26:38","date_gmt":"2022-07-26T21:26:38","guid":{"rendered":"https:\/\/saudishopper.com.sa\/en\/?p=35387"},"modified":"2026-03-28T01:23:10","modified_gmt":"2026-03-27T22:23:10","slug":"supply-chain-in-the-middle-east-demands-a-different-approach","status":"publish","type":"post","link":"https:\/\/saudishopper.com.sa\/en\/supply-chain-in-the-middle-east-demands-a-different-approach\/","title":{"rendered":"Supply Chain in the Middle East Demands a Different Approach"},"content":{"rendered":"\n

By Joe Terino, Global Head of Bain & Company\u2019s Supply Chain Practice and Karim Shariff, Partner, Bain & Company Middle East<\/em><\/p>\n\n\n\n

For decades, companies in the Middle East have embraced globalization and lean supply chain operations to meet more demanding customer expectations while bringing down costs and reducing inventory. But the inherent weakness and vulnerability of this model has been exposed by a decade of supply chain disruptions that grew in frequency and magnitude. Natural disasters, weather events, labor shortages, trade disputes, and other geopolitical issues showed the cracks in global supply chains. Then, over the past two years, several aspects such as the devastating Covid-19 pandemic and the global semiconductor shortage, made this vulnerability obvious to every business leader\u2014and moved supply chain resilience to the top of the C-level agenda.<\/p>\n\n\n\n

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The worst of these supply disruptions have taken significant bites out of regional companies\u2019 output, sales, profitability, and share prices, with recovery sometimes taking months or even years. The chip shortage, for example, is estimated to have curbed global automotive production by more than 7 million vehicles in 2021, and the industry, similar to others, has yet to fully recover. Most of these disruptions understandably caught leadership teams by surprise. But the result is that they\u2019re now constantly on edge, awaiting the next unforeseen disruption lurking around the corner. <\/p>\n\n\n\n

A growing number of executives have decided they can no longer afford to get caught flat-footed. They recognize that while it\u2019s important to respond effectively to short-term supply chain shocks, they also have to reposition their supply chain for the long haul because disruption is the new global reality. Companies that manage these disruptions best will have a distinct competitive edge over the next decade. At the same time, pressure from consumers, regulators, and shareholders to increase sustainability is making supply chain repositioning an even more urgent priority\u2014and creating another potential source of competitive advantage.<\/p>\n\n\n\n

What it takes<\/strong><\/p>\n\n\n\n

The challenge is finding the appropriate balance among resilience, sustainability, responsiveness, and cost. These goals often run counter to one another. For example, a supply chain that is 100% resilient will also likely be too costly. There will always be trade-offs, and the balance will look different for every company, depending on various factors such as their industry, geographic footprint, and size.<\/p>\n\n\n\n

A few questions can help jump-start the process of striking the balance that\u2019s right for your company:<\/p>\n\n\n\n