SUPPLY CHAINS UNDER PRESSURE: HOW CAN DATA SCIENCE HELP?

The ideas and opinions expressed in this publication are the sole responsibility of the authors and do not necessarily represent the positions of CIRANO or its partners. [...] Can data science help us think in complex terms about these international trade issues? Vulnerability of global value chains From the acquisition of raw materials to the production and delivery of the finished product, the production process is increasingly fragmented so that each activity that adds value to it can be performed wherever the necessary inputs are available at a competitive cost. [...] These elements are often intangible.2 After the 2008 recession, several scientific articles have focused on the renewed interest in reshoring.3 The future of global supply chains in a post-pandemic world, their vulnerabilities, and the need for better risk management are all issues that have been addressed recently in the literature on the subject. [...] (improbable according to our current knowledge), and all the while we spend our time engaged in small talk, focusing on the known and the repeated."4 In the post-pandemic era, the world has changed, and companies are facing a perfect storm, with catastrophic risks that have a low probability of occurrence but for which the consequences are enormous. [...] Recall that at the height of the pandemic, masks and other medical equipment were mass-produced abroad through global value chains and global supply chains, not through the leverage of local economies.5 Nevertheless, it is not a question of blindly trusting the market economy to mitigate risks.