importance of having full visibility into their supplier networks . If companies know which suppliers , sites , components and products are at risk , they can prepare for and mitigate the effects of possible disruptive events ,” says Vakil .
Over the next 12 months , she expects to see the introduction of new legislation , as well as diversification . More and more countries will recognise the challenge in the semiconductor market , with the UK government unveiling a new £ 1bn semiconductor strategy to strengthen the supply chain and increase its resilience .
“ As countries try to become more selfsufficient , they invest in new partnerships , build long-term plans and expand their infrastructure as well as capacities . At the same time , while tensions between the West and China grow , decision-makers look to Japan – as evidenced by the recent announcement of the UK ' s semiconductor partnership with Japan – with the US looking to bring manufacturing back to American soil .
“ What will be crucial for the overall situation of the global supply chain is new legislation , like the recently approved EU Corporate Sustainability Due Diligence Directive or the German Supply Chain Due Diligence Act ,” said Vakil . “ Businesses will need to increase their efforts in a number of areas to comply with new policies and make sure they have supply chain management practices in place . These include mapping all of their suppliers in the network , having visibility beyond the largest suppliers , and monitoring them for potential ESG risks in order to do their due diligence and comply with new regulations .”
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