Reducing Supply Chain Dependence on Single Source
Countries can improve their economy and production by reducing supply chain dependence on a single country or source.
Air Date: July 21, 2020
Moderator: Madhusudan Gopalan, , Procter & Gamble India
Featured Guests: Congressman Ami Bera, MD, , U.S. Congress
The COVID-19 pandemic has shown the flaws in overreliance on a single source supply chain. When these supply chains were hit with the virus, they shut down for a period. This trickled down in affected production across multiple products and industries. Now many manufacturers are realizing that they cannot rely on a single source for all of their supply chain needs. Especially when it comes to the coronavirus vaccine.
Indian-American Congressman Ami Bera, of California, saw how the pandemic exposed and overreliance on a single source, particularly the raw gradients for PPE for our pharmaceutical sector, coming from China. But he believes from this dilemma brings the hope that India can play a significant role in the coming year to work with America and the rest of the world to contain the virus.
India’s Manufacturing Sector Can Help Distribute the COVID-19 Vaccine Faster
The overreliance on a single-source country for goods and materials can potentially limit the speed and effectiveness in which the COVID-19 vaccine is distributed. However, by working with India and other countries, the burden of responsibility can be spread out, which in turn will create a more functional supply chain.
“This is a unique area where India has a mature vaccine manufacturing sector,” Bera said. “They've been manufacturing and distributing vaccines for much of the world for quite some time. And this is a place where India can help the United States, but also can help the rest of the world.”
The Solution to Global Supply Chain Diversity Isn’t Competition — It’s Collaboration
There is a hesitancy towards the globalization of the economy. However, in order for every nation to optimize their opportunities, they must learn to work together including the United States and India.
“If we do work together to build on the strengths of both countries, we will get through this faster,” Bera said. “We will help create a 21st-century framework of countries that value democracy, that value human rights, that value free and open markets. If you look at the past few decades, the trading relationship between the two countries has really been growing and it's not just the U.S. companies making investments in India,” added Bera. “If we're smart and strategic about this. I think we will come out on the back end closer as friends and partners, and we can set the framework for what the 21st century looks like.”