Market disruption arising from geopolitical volatility and COVID-19 has shown a spotlight on supply chains as an overall indicator of business health and served as a catalyst for organizations to examine the vulnerabilities in their supply chains. The need to diversify from single-source suppliers without sacrificing efficiency, utilize low-cost labor while complying with new ESG standards, strategically invest or divest in an ever-more complex M&A environment, and adopt innovative technologies while ensuring cybersecurity are all front of mind.
In this environment, strengthening and transforming supply chains for the future means navigating unprecedented complexity driven by commercial and legal interdependencies, which are often based on incomplete or changing information. It is about balancing and finding a different, or less rigid, route to achieve what is of most value for your company. It is not "this or that", it's “both and”.
A connected perspective on legal possibilities, risks and intricacies is often missing from supply chain transformation plans. Attempting to manage complex legal issues in isolation – market by market, tariff by tariff and contract by contract – belies the hyper-connectivity of modern supply chains and once again leaves companies susceptible to risks they seek to mitigate or short of the transformation they seek to achieve. We understand how the law presents a primary gateway to achieving commercial goals and building a stronger supply chains for the future. The law is where plans to transform become reality – where the rubber meets the road, and a holistic legal approach is a critical mobiliser of supply chain transformation.
Through our Resilience, Recovery & Renewal model, we bring together our broad expertise and industry knowledge in a fully integrated supply chain service, enabling our clients to achieve their commercial aims by navigating legal interdependencies through a fully integrated supply chain service at a scale no other international law firm can match.
Stay in the game by managing supply chain disruptions
Respond to disruption and manage legal obligations to customers, employees and suppliers
- Leverage contractual relief provisions
- Control supply chain disputes and claims
- Adapt to trade restrictions, exemptions, customs and identify essential services
- Understand and access relevant government aid and incentives
- Access capital to retain liquidity
- Pivot to new suppliers and/or enter new supply markets
- Mitigate tax impact
- Manage workforce, health, and safety & privacy obligations. Guard the human rights of the most vulnerable in supply chains in light of needing to upscale / downscale production lines.
Compete through rebuilding and strengthening supply chains
Address supply chain vulnerabilities and build stronger networks, prepare for new demand
- Map and understand supply chain risks, weaknesses and compliance exposure
- Re-negotiate, manufacturing and supply agreements and re-consider supplier selection to augment relief provisions and strengthen sourcing arrangements
- Restructure to manage insolvency and distressed investments, obtain financial flexibility
- Explore opportunistic acquisitions, investments, partnerships and outsourcing deals
- Adopt digital infrastructure - electronic contracting, digital payment and e-commerce capacities to build resiliency into your operation
- Reassess transfer pricing and tax planning strategy
Outperform by transforming supply chains
Leverage supply chain as a commercial driver – reimagining supply chain infrastructure and capability
- Map in-category, industry and adjacent demand changes, trends and timelines
- Large-scale supply chain diversification. Consider nearshoring, in-sourcing fixed assets acquisition divestments tax and transfer pricing strategy
- Large-scale business model and/or digital transformation. Consider automation, machine learning and internet of things ("IoT"), blockchain, distributed ledger technology, digital sales, and direct to consumer ("D2C"). Understand and address associated liability, capital needs and workforce strategy
- Large-scale sustainability transformation, including “cleaning” supply chains, circular manufacturing, a greater standard of ESG reporting and compliance
Why Baker McKenzie
Our Firm has a unique ability to achieve your supply chain aims. We do not offer pre-packaged solutions or adopt a siloed approach.
Instead, we provide strategic legal counsel that helps clients join the dots between business priorities and legal practicalities.