Companies face multiple challenges in global supply chains including the impact of international organizations, political upheavals, and shifts in outsourcing and offshoring. The pandemic and geopolitical conflicts have heightened these issues, although trade has continued to grow despite them. Addressing labor rights and policy improvements is key for future stability.
Challenges that a company can face with regard to global supply chains include a variety of factors such as the impact of international organizations like the European Union, political upheavals, and the dynamics of outsourcing and offshoring. The COVID-19 pandemic and geopolitical tensions, such as the war in Ukraine, have further exacerbated these challenges, disrupting production, distribution, and the availability of labor and raw materials. Despite these obstacles, globalization and the advancements in technology have allowed international trade to continue growing. However, this has also led to structural changes, such as the shift from manufacturing to service industries and increased global competition, which can sometimes result in political backlash and calls for more domestic job retention. Protecting labor rights and integrating improved labor policies on national and global levels is crucial for the sustainability of global supply chains.