The recent pandemic policies and ongoing geo-political conflicts have underscored the critical importance of resilient supply chains, and Central Eastern Europe (CEE) is acutely aware of this. The region’s emphasis on building supply chains capable of withstanding such disruptions is not merely a reaction to recent events but a strategic foresight into the future of global trade and commerce. The shift towards more resilient supply chains in CEE reflects an understanding that robust, flexible, and responsive logistics networks are essential for maintaining economic stability and growth.
Resilience in supply chains involves various strategies and practices. One key approach is diversification – both in terms of suppliers and logistics routes. CEE countries are actively seeking to broaden their supplier base, reducing dependence on single sources, which has traditionally been a vulnerability. For example, the over-reliance on components and raw materials from a single country was a significant issue for many CEE nations during the pandemic. In response, countries like Poland and Hungary are exploring alternative suppliers and localising certain aspects of their supply chains to mitigate such risks in the future.
Another aspect of building resilient supply chains is investing in digital technologies. The use of advanced analytics, IoT, and AI for supply chain management is gaining traction in the region. These technologies enable better forecasting, real-time tracking, and more efficient inventory management, all of which contribute to the agility and responsiveness of the supply chains. Czechia, known for its robust automotive industry, is an example where such digital integration is being accelerated to ensure continuity in production and logistics.
The concept of 'nearshoring’ is also becoming increasingly popular in CEE. This involves relocating production and sourcing activities closer to the end market to reduce transit times and logistical complexities. Romania and Bulgaria, with their strategic locations and growing industrial capacities, are becoming attractive destinations for companies looking to nearshore their operations.
The region is also focusing on strengthening its transportation and logistics infrastructure to support more resilient supply chains. This includes upgrading port facilities, expanding rail and road networks, and developing intermodal transportation capabilities. Slovakia’s investment in its rail network and Croatia’s focus on enhancing its port infrastructure are steps towards creating more robust and efficient logistics corridors.
Despite these initiatives, building resilient supply chains in CEE is not without challenges. The cost of diversifying suppliers, investing in new technologies, and upgrading infrastructure can be significant. Additionally, there is a need for regional cooperation and coordination, as supply chain resilience often involves cross-border logistics and trade policies.
The focus on building resilient supply chains in Central Eastern Europe is a strategic response to the vulnerabilities exposed by recent global disruptions. By diversifying suppliers, investing in digital technologies, adopting nearshoring strategies, and enhancing infrastructure, CEE countries are working towards creating supply chains that are not only robust but can also adapt and respond to future challenges. As the region continues to integrate into the global economy, the resilience of its supply chains will be crucial for its economic stability and growth.
