The Bank of England’s report; ‘A Portrait of the UK’s Global Supply Chain Exposure’ highlights how interconnected and exposed the UK’s supply chains really are. Beyond the surface, a significant portion of the UK’s manufacturing inputs come through indirect “hidden” channels, making them more vulnerable to global disruptions.
Key Insights:
- Hidden Dependencies: Over half of the UK’s foreign manufacturing inputs come indirectly. This means many industries depend on second- or third-tier suppliers, often without realising it. A disruption at any point in this web - whether from geopolitical events, shipping delays, or supplier issues - can cause ripple effects across the supply chain.
- China’s Role: When indirect channels are factored in, China emerges as a key supplier for sectors like vehicles, electronics, and machinery. This reliance increases the risk of bottlenecks if supply is disrupted.
- Sector Vulnerabilities: Industries relying heavily on intermediate goods, such as automotive and electronics manufacturing, face higher exposure. A single weak link in their supply chains can lead to significant delays, cost overruns, and production halts. These interconnected risks make visibility and proactive management essential for resilience. These complexities highlight the need for proactive solutions.
At Oii.ai our Optii platform uses digital twins to give businesses a full view of their supply chains, revealing hidden dependencies and providing actionable insights. Optii ensures supply chains are agile and prepared for unexpected disruptions by simulating scenarios and optimising operations. Optii orchestrates your data with intelligence!
Read the Bank of England report ‘A Portrait of the UK’s Global Supply Chain Exposure’ here: 👉🏼 https://lnkd.in/gfg_W6iM
