Flex : Balancing the manufacturing ecosystem in a globalized world
February 17, 2022
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Balancing the manufacturing ecosystem in a globalized world
02/18/2022 - by Revathi Advaithi
This article was originally published by the World Economic Forum
Two years of pandemic-induced disruptions have laid bare the risks inherent to low-cost globalized supply chains. Factory shutdowns and logistical bottlenecks oceans away have disrupted access to essential goods everywhere - and continue to do so.
It is clear that we urgently need to address the risks systemic to our global value chains and reshape them instead into more resilient, equitable and cost-effective systems.
Diversifying risk
Building genuine resilience will require concerted efforts from governments around the world - their involvement is critical to making the foundational investments that will open a pathway toward creating balanced and shock-resistant supply chains.
Many have championed the reshoring of manufacturing as the centerpiece for securing critical supplies, but this is not a silver bullet. Resilient supply networks require diversifying risks across borders, while also leveraging the strengths of different geographic markets and increasing cooperation between the private and public sectors.
For example, replacing Asia's mature manufacturing ecosystem is neither practical nor realistic. Asia will continue to be a key source of many goods and even as it seeks to move up the value chain, its manufacturing ecosystem will continue to serve the kind of production that requires low-cost scale and efficiency.
But if the goal is not to replace Asia as the world's manufacturing hub, then what does a rebalanced value chain look like?
Continue reading on the World Economic Forum
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Written by
Revathi Advaithi
Chief Executive Officer
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Flex Ltd. published this content on 18 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 01:21:05 UTC.
Flex Ltd. is engaged in providing a portfolio of manufacturing solutions and services. The Company operates through three segments: Flex Agility Solutions (FAS), and Flex Reliability Solutions (FRS). The FAS segment is comprised of various end markets, such as Communications, Enterprise, and Cloud (CEC), including data infrastructure, edge infrastructure and communications infrastructure; Lifestyle, including appliances, consumer packaging, floorcare, micro mobility and audio; and Consumer Devices, including mobile and high velocity consumer devices. The FRS segment consists of end markets, such as Automotive, including mobility, autonomous, connectivity, electrification, and smart technologies; Health Solutions, including medical devices, medical equipment, and drug delivery; and Industrial, including capital equipment, industrial devices, and renewables and grid edge.