Global Value Chains: Sourcing Strategies for Resilience amidst COVID-19

Abstract

COVID-19 has profoundly impacted the already vulnerable pharmaceutical, agricultural, and food supply chains, leading to disruptions in their sourcing processes.  Hence, it is crucial to emphasize the universal imperative of enhancing resilience in Global Value Chains across various industries in today’s interconnected global economy.  It seeks to explore how the COVID-19 pandemic has impacted GVCs and influenced the availability of critical resources. We have investigated the repercussions of the COVID-19 pandemic on Global Value Chains due to its widespread disruption of supply chains, which has posed immediate challenges for businesses and necessitated resilience strategies. Our research reveals a consistent relationship between impact levels observed in domestic and international contexts. Changes in domestic impact levels closely align with those observed abroad, indicating a robust positive correlation. This correlation emphasizes the interdependence of sourcing challenges across both domestic and international spheres. We propose near-shoring as a management strategy by integrating regional market trends alongside digital transformation to optimize supply chain resilience, enabling businesses to cope with fluctuations in markets and take advantage on new possibilities.