Restructuring of Global Supply Chain - Focusing on Proximizing and Diversification Strategies -

Purpose : This study aims to investigate changes in the global supply chain in the wake of the COVID-19 pandemic and explore how changed strategies can contribute to sustainable growth and strengthening global competitiveness of the firm. Research design, data, methodology : We explain the evolution of global supply chain management in terms of academic perspectives and investigate the effects of COVID-19 pandemic, geographical tensions, and national policies on the global supply chain. Next, we introduce the concepts of reshoring, nearshoring, friend-shoring, and supply chain diversification, and learn about the impact of these strategies on firm performance in previous studies. Finally, we examine what factors currently affect global supply chain strategies through in-depth case studies using four multinational enterprises. Results : Companies are restructuring their global supply chain to have sustainable competitive advantage by considering various factors such as reduced dependence on a single supplier, geopolitical risk management, market accessibility, and alignment with national policy directions, in addition to cost advantages that were previously focused on in global supply management strategies. Conclusions : The existing global supply chain strategy, represented by offshoring, has revealed its vulnerabilities through external environment changes. Therefore, in the global value chain allocation, companies are now considering survival and competitiveness by addressing various factors in addition to cost reduction. Accordingly, managers should strive to expand more flexible and resilience supply chain strategies, and policymakers should take into account policies aligning the nation's strategic sectors with the company's global supply chain strategy, benefiting both the companies and the country.