Transforming the Global Supply Chain: Cyber Warfare, Technology, and Politics

International business lawyer and prolific author Dennis Unkovic has written the book of the moment with Transforming the Global Supply Chain: Cyber Warfare, Technology and Politics. Published before what some critics are calling the “Biden Christmas,” with a specter of empty shelves at retailers as cargo ships languish offshore, this book expounds on the theme that the supply chain is undergoing significant changes and that the “old normal” is unlikely to return. The scope of the book is highly ambitious, but Unkovic realizes his ambition in a clear, well-written, thoughtful and practical book. In his usual building-block approach, Unkovic first describes the classic supply chain but then convincingly argues that e-Commerce is here to stay, that the customer is now truly king, and that technical innovations (such as 3D printing and robots) will help to define the new normal. He cites the long history and necessity of maritime transportation, as well as the vulnerability of shipment by air in times of crisis. Returning to a familiar theme about the dominance of China in the supply chain (as the exporter of 60% of all consumer goods, for example), Unkovic nevertheless predicts that China’s hegemony will be challenged by what he calls “MaxTrends.”In a world not unfamiliar with cyberattacks, Unkovic states that all companies are vulnerable to this MaxTrend, and he provides a focused primer on the steps that companies can take to protect against (and respond to) cyberattacks. Unkovic then explains the multiple and growing uses of this means of production, and he outlines the benefits of this MaxTrend in the design, ease of manufacturing, and even location of manufacturers or products. Robots are also given space in the book as the third MaxTrend, with a focus on warehouse operations managed by humans and made more efficient by robots. In a pivotal chapter, Unkovic describes the tightening of the rules on direct foreign investment by various countries, including the United States. For anyone contemplating an investment in the United States, Unkovic even explains the process of a review by the Committee on Foreign Investments in the U.S. (CFIUS). Further chapters are dedicated to sourcing in the Far East outside of China and the trend of “reshoring” of manufacturing in the United States.Dennis Unkovic always displays a practical bent in his books. Two chapters outline primers to CEOs and to supply chain professionals, lawyers and consultants. These chapters along with the chapter titled “Who Do You Call When Your World Falls Apart,” well repay the reading of Transforming the Global Supply Chain. Expanding the already magisterial scope of the book, Unkovic covers the use of rare earth minerals and the supply chain in the medical industry, and he also takes a look at the “next four years,” under President Joe Biden. Let us see what happens!

The fact that we are experiencing one of the worst supply chain catastrophes in the last century is no longer news. As author Dennis Unkovic (one of the finest lawyers on international law and a frequent traveler to China over the past 40 years) points out, some elements of this crisis were predictable, but Covid really pushed it off the cliff and the resulting crises in both production and transportation are not likely to be easily remedied soon nor is it likely that we will ever go "back to normal".The new normal is going to be a world of shortages, extraordinarily expensive transit, businesses closing because they can't get small parts in time to ship critical contracts and empty shelves.... for a long time to come. Fortunately, he also documents some absolutely extraordinary trends (which he calls MaxTrends) that will in a brief period of time transform our conception of what is an effective supply chain and point out solutions for companies smart enough and quick enough to adopt his strategies not only ensuring their survival but giving them a significant competitive advantage over firms that choose the time-tested and failing strategy of "let's wait and see if it all works out".This is a book for the consumer that wants to understand empty shelves and how this crisis is so much more than a little blip on the radar. This book is also for the business practitioner who wants to go beyond the headlines and rhetoric to really understand deeply what's going on and also have some alternatives at hand, so it isn't just a matter of sit and wait. This book is also for the student that wants to get a quick look at the future and what the world of manufacturing is going to look like for successful companies in the next 5 years and also the how they can understand how some very strong brands with excellent manufacturing records will just be memories in the same time period.Provocative writing from a true expert who can explain how we got here and where we are going. You’ll be ahead of the pack if you read it, I’m very glad I did!!!

As a retired consultant of KPMG, I could not help remember how many times we cautioned executives and board members about putting “all their eggs in one basket” when moving manufacturing to China. This book underlines that timeless advice with strategies to do so. It gives insights into the multiple problems and the cascading events that can topple any supply chain. No one is immune, regardless where you sit in the supply chain as an end user, a supplier or the man in the middle. The pandemic brings these issues to the forefront with an urgency for every company to analyze the intricacies of their supply chain.The advice to have outsiders to take a metric-based approach to the analysis is of prime importance. Often the very employees who set up the supply chain are asked to conduct the analysis which is simply a risky proposition given their biases and, in many cases, limited exposure to other supply approaches and methodologies. As the saying goes “Nobody’s baby is ugly”I found the chapters on 3D printing and robotics gave me a sense of the shifting economics from low-cost labor entities to the reshoring of manufacturing. The demise of multi-lateral trade agreements was thought provoking. All in all, I found it a worthwhile read