Three global shocks end Asia's just-in-time supply chain era
Covid, Ukraine, and the Hormuz crisis have made disruption the new normal for Asian trade.
For years, Asia's supply chains were the epitome of 'just in time' efficiency—minimizing inventory and relying on frictionless global logistics. But three major shocks in just six years have shattered that model. First, Covid-19 closed factories and disrupted global logistics. Then Russia's invasion of Ukraine drove up energy prices and choked grain exports. Now, the US-Israel war on Iran, with the closure of the Strait of Hormuz, has delivered what many economists call the final blow.
Jakir Ahmed of IbisWorld notes that together, these events show serious disruption is now a regular occurrence—not a one-off anomaly. Shay Wester of the Asia Society Policy Institute adds that the lesson has sunk in: disruption is a recurring feature of trade, not an exception. Governments and businesses across Asia are now rethinking supply chain strategies, moving away from pure cost efficiency toward resilience, diversification, and buffer stocks. The era of 'just in time' may be giving way to 'just in case.'
- Asia has faced three major supply chain shocks in six years: Covid-19, the Ukraine war, and the US-Israel war on Iran (Hormuz).
- Economist Jakir Ahmed of IbisWorld says these events prove disruption is now a regular, not exceptional, occurrence.
- Shay Wester of the Asia Society Policy Institute states that the 'just in time' model is no longer viable as disruption becomes a recurring trade feature.
Why It Matters
Businesses must shift from cost-driven to resilient supply chains as global disruption becomes the new norm.