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How to reshore Supply Chains
The document discusses strategies for re-shoring supply chains. It recommends diversifying supply sources beyond China through partnerships with local companies in other countries. Companies should consider a "China-plus-one" model to reduce dependence on Chinese suppliers. Governments need to work together on economic development strategies to attract reshoring. Technologies like blockchain can help improve supply chain management and transparency.
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How to reshore Supply Chains
- 1. HOW BEST TORE-SHORE SUPPLY CHAIN Paul Young CPA, CGA – November 10, 2020
- 2. PAUL YOUNG -BIO • CPA, CGA • Financial Solutions • SME – Risk Management • SME – Emerging Technology • SME – Business Process Change • SME – Close, Consolidate and Reporting • SME – Public Policy • SME – Financial Solutions • SME – Supply Chain Management Contact information: Paul_Young_CGA@Hotmail.com
- 3. KEY PRODUCTS • MedicalSupplies • Pharmaceuticals • Strategic Metals • Oil • Natural Gas • Food Processing • China / Supply Chain • Technological Disruption • Summary • Training/Development Add a Footer 3
- 4. MEDICAL SUPPLIES Source -https://www.prnewswire.com/in/news- releases/medical-supplies-market-size-is- projected-to-reach-usd-160-6-billion-by-2025- growing-at-a-cagr-of-7-2-valuates-reports- 873469099.html Add a Footer 4 Next steps • The procurement cycle needs to be coordinated between provincial and states related medical supplies - https://thehill.com/opinion/international/490963-a- defining-moment-in-our-medical-supply-chain-crisis • All levels of government need to set up strategic supplies of key medical equipment. Yearly audits should be done to ensure the supply meets future demand as well as dealing with any expiration dates. • Hospital funding will need to be adjusted to respect higher costs related to sourcing medical supplies locally.
- 5. PHARMACEUTICALS Source https://www.globenewswire.com/news- release/2020/01/17/1972092/0/en/Global- Pharmaceuticals-Industry-Analysis-and-Trends- 2023.html - Adda Footer 5 Next steps • Private and Public drug plans need to be re-evaluated as part changes to pharmacare - https://www.slideshare.net/paulyoungcga/can-canada-be- successful-at-pharmacare • Review of patent protection laws for drugs - https://www.canada.ca/en/health- canada/news/2019/08/government-of-canada-announces- changes-to-lower-drug-prices-and-lay-the-foundation-for- national-pharmacare.html • Review of regulations, tax policies, etc. related to R&D as part of supporting the pharmaceutical sector
- 6. STRATEGIC METALS – RARE METALS RareMetals - https://investingnews.com/daily/resource- investing/critical-metals-investing/rare-earth- investing/rare-earth-reserves-country/ Add a Footer 6 • Re-thinking the supply chain for clean technology including alternative products that are less dependent on rare earths • Encouraging manufacturers of cell phones and other products to move to other jurisdictions • India / Apple - https://appleinsider.com/articles/20/05/18/apple- moves-to-de-risk-china-production-keep-iphone-se- price-low • Re-visiting power generation with more focus on other sources like molten salt, hydro, nuclear, natural gas - https://www.slideshare.net/paulyoungcga/electricity- generation-co2-and-environmental-impact-whats-next • China dominates the world in terms of rare metals • The world needs to look at other sources for rare metals including development new sources - https://business.financialpost.com/commodities/mining/ you-dont-control-your-destiny-why-canadas-rare-earth- deposits-are-staying-in-the-ground • Key is development of these remote mines in economic and sustainable manner
- 7. STRATEGIC METALS - LITHIUM Source- https://www.statista.com/statistics/2 68790/countries-with-the-largest- lithium-reserves-worldwide/Add a Footer 7 • Supporting development and manufacturing of lithium batteries locally - https://smallcaps.com.au/novonix- discovers-breakthrough-method-low-cost-synthesis- lithium-ion-battery-materials/ • More balance when it comes to electrical cars vs gas power - https://www.slideshare.net/paulyoungcga/ev- electrical-vehicles-all-you-need-to-know • How best to support the building of 5G networks • https://www.northernminer.com/subscribe- login/?id=1003812039 • Support local mining and smelting operations - https://electricautonomy.ca/2020/05/05/ontario-cobalt- refiner-eyes-breakthrough-ev-supply-chain-role/ • Key reserves for lithium are in Latin America • Stronger trade and investment ties to Central America
- 8. STRATEGIC METALS - VANADIUM Source - https://investingnews.com/daily/resource- investing/battery-metals-investing/vanadium- investing/vanadium-reserves/ Adda Footer 8 • Bulk of vanadium is controlled by Russia and China • Strategic purchases of assets/mines https://www.northernminer.com/fast-news/u-s- vanadium-acquires-russian-owned-vanadium-facility- in-arkansas/1003810596/ • Streamlining the regulator process for mines - https://investingnews.com/company- profiles/vanadium-one-iron-tsxv-vone-ore-vanadium- mineral-exploration-canada/ • Look at ways to support local battery producers - https://www.greentechmedia.com/articles/read/flow- batteries-struggle-in-2019-as-lithium-ion-marches-on
- 9. OIL SECTOR • Oilstill plays a vital role as plastics are required for medical supplies, vehicles, etc. • Oil needs to be treated with respect • Oil needs to be identified as a strategic resources • Oil needs to get to international markets (Canada and USA) • Pipeline construction needs to be prioritized including streamlining the approval process (analytics/modeling, committee hearing, etc.) • Energy hubs should be established as part of exporting oil to international markets • Made in country solutions as it relates to petrochemical production. Add a Footer 9 Source - https://www.slideshare.net/paulyoungcga/oil-and-gas-sector-whats-happening-outlook- 2020-and-beyond
- 10. NATURAL GAS Source - https://www.slideshare.net/paulyoun gcga/liquefied-natural-gas-canada- what-is-nextAdda Footer 10 • Natural gas power plants are growing importance - https://www.eia.gov/todayinenergy/detail.php?id=4 2497 • Streaming the regulator process for LNG plants • Countries like USA and Canada should identify natural gas as strategic assets as part of promoting LNG development/commercialization
- 11. FOOD PROCESSING Source -https://www.slideshare.net/paulyoungcga/agriculture-and- farming-sector-whats-next Add a Footer 11 • Food processing needs to be treated as strategic asset • More supports to farmers (tax fairness, labor reforms, etc. • More emphasis on distribution channels (i.e. ports, rails, etc.) • More balance trade between countries • WTO needs to reform as part fixing issues with protectionism - https://www.slideshare.net/paulyoungcga/2019- election-global-trade-barriers-and-protection- wto-canada-september-2019
- 12. USA AND SOURCING Source -https://www.mhlnews.com/global-supply-chain/article/21137578/manufacturers-are- shifting-supply-chainsAdd a Footer 12 • Big winner could be Mexico due to USMCA • All levels of government in USA and Canada need to work together on economic development strategy - https://www.brookings.edu/research/reshoring-advanced- manufacturing-supply-chains-to-generate-good-jobs/ • Re-shoring will not completely abandon China - https://mitsloan.mit.edu/ideas-made-to-matter/reshoring- restructuring-and-future-supply-chains
- 13. CHINA AND SUPPLY CHAIN U.S.companies trying to sustain business in China. Companies are increasingly likely to map out a multiyear strategy for developing products geared toward the Chinese market, based on the company’s competitive advantage over local alternatives, and what is considered “good enough” in the target segment. One option is to partner with a local business in China to gain access to the market with a mandate requiring purchases from indigenous companies. For example, Hewlett-Packard Enterprise has a successful partnership with H3C that opens the Chinese enterprise IT market for HPE. In addition, U.S. companies might look to acquire assets or build new business models in segments where China or the Eastern Bloc has a strength that the U.S. lacks, such as 5G equipment. Another key decision: Many companies are considering a “China-plus-one” supply chain model to reduce dependence on Chinese suppliers, add redundancy and increase resilience. https://www.industryweek.com/the-economy/public- policy/article/21147345/preparing-for-uschina- decoupling?utm_source=IY+IW+Daily+Headlines+- +Morning&utm_medium=email&utm_campaign=CPS201106066&o_eid=7930I4 506489J2B&rdx.ident%5Bpull%5D=omeda%7C7930I4506489J2B&oly_enc_id=7 930I4506489J2B Governments and businesses face crisis all the time. The key is how businesses and government make changes including how they mitigate risks with their various supply chains - https://www2.slideshare.net/paulyoungcga/how-to- implement-crisis-management-using-data-and-ai Add a Footer 13
- 14. TECHNOLOGY DISRUPTION Ark Invest hasa report on Bad Ideas for investing during the 2020s. Ark Invest manages invest ETFs of about $20 billion. ARK’s Invest believes in Autonomous Technology and Robotics, Next Generation Internet, Genomic Revolution, Fintech Innovation, 3D Printing, Israel Innovative Technology, and the overall Disruptive Innovation. Areas of concerns: 1. Tax policy changes including fuel taxes, licensing, and tolls as part of looking how best to support infrastructure - https://www2.slideshare.net/paulyoungcga/canada-infrastructure-analysis-of- policy-238326543 2. More policy changes as it relates to the circular economy - https://www2.slideshare.net/paulyoungcga/how-to-best-support-a-circular- economy 3. Rethinking how best to support clean technology for the transportation sector - https://www2.slideshare.net/paulyoungcga/ev-electrical-and-hybrid-vehicles- analysis-and-commentary-november-4-2020 4. Combustible fuels are still needed as part of the power generation - https://www2.slideshare.net/paulyoungcga/report-electricity-analysis-canada- and-the-world 5. eCommerce model still needs work in terms how best to support your customers - https://www2.slideshare.net/paulyoungcga/retail-sales-analysis-australia or https://www2.slideshare.net/paulyoungcga/retail-sales-canada-august-2020 or https://www2.slideshare.net/paulyoungcga/retail-sector-united-states- september-2020 6. New transportation equipment will require steel, plastics, metals, lithium, etc. There is a global demand for metals - https://www.canadianmanufacturing.com/manufacturing/mining-metals- needed-for-electrification-faces-low-price-obstacle-263430/ a. Countries around the globe need to reform their mining practices - https://www2.slideshare.net/paulyoungcga/natural-resources-canada-how- best-to-get-goods-to-market Add a Footer 14
- 15. IT AND SUPPLY CHAIN MANAGEMENT Adda Footer 15 Planning Analytics and Supply Chain Management IBM Blockchain and Food Chain
- 16. SUMMARY • China isno longer an emerging market - https://www.slideshare.net/paulyoungcga/search_ my_uploads?type=&new=&q=China • Refocusing of governments of on the goods producing sector - https://www.slideshare.net/paulyoungcga/how-do- you-address-and-fix-income-inequality • Embracing technology as part of supporting GDP growth - https://www.slideshare.net/paulyoungcga/technolo gy-whats-next-for-canada • Fair trade deals - https://www.slideshare.net/paulyoungcga/what-is- next-for-for-global-trade-protectionism • Global Economy - https://www.slideshare.net/paulyoungcga/global- economy-whats-next • What’s next for the USA - https://www2.slideshare.net/paulyoungcga/whats- next-for-the-united-states-november-2020 • Clean Technology - https://www2.slideshare.net/paulyoungcga/what- is-next-for-clean-technology Add a Footer 16