Oliver Wyman Urges GCC to Bolster Supply Chains for Industrial Progress

The Gulf Cooperation Council (GCC) nations were advised by Oliver Wyman, a worldwide management consulting firm, to solidify their supply chains to bolster large-scale industrial development. A recent report titled "Industrial Supply Chain Resilience: GCC Preparedness Amid Global Disruptions" emphasizes the need for GCC governments to prioritize supply chain resilience.

The report underscores the heightened vulnerabilities exposed in global supply chains in recent years. The COVID-19 pandemic, a surge of climate-related disasters, escalating cyber threats, logistical hurdles, geopolitical tensions, and conflicts have all significantly impacted supply chain stability.

Oliver Wyman emphasizes that for the GCC's ambitious industrialization plans to succeed, robust supply chain strategies and enablers are paramount. The report highlights the importance of mitigating current risk levels, particularly for critical products like transformers and essential minerals. Disruptions in the industrial sector, a cornerstone for numerous other sectors, can trigger a domino effect that could cripple the entire economy.

The report recommends a multifaceted approach that merges localization with other supply chain resilience strategies to safeguard industrial growth. Oliver Wyman underscores that a "one-size-fits-all" approach is not suitable. The most effective levers to strengthen supply chains, including localization, shoring, and strategic partnerships, should be applied judiciously to high-risk and critical components within the supply chain.

Collaboration with the private sector is another crucial aspect highlighted by Oliver Wyman. The report suggests that GCC governments can cultivate supply chain resilience by incentivizing private sector initiatives that enhance logistical robustness. Additionally, implementing inspection measures and corrective actions are recommended to ensure ongoing efficiency.

To bolster the logistics network, the consulting firm proposes that GCC countries establish specialized teams within their industrial ministries. These teams should comprise professionals with expertise in risk assessment and management, logistics operations, data analysis, and technology.

Oliver Wyman's report comes at a time when GCC nations are actively pursuing economic diversification, with a strong focus on industrial development. The report serves as a timely reminder that robust supply chains are the backbone of a thriving industrial sector, which is itself essential for overall economic prosperity in the GCC.

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