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Longer supply chains ‘bring innovation and lower prices’ – Supply Management

Longer supply chains ‘bring innovation and lower prices’

posted by Will Green in Procurement 10 January 2022

Companies have responded to Covid disruption by shortening supply chains but a study suggests longer supply chains provide more innovation and economic benefit.

A team of academics from the University of Oxford and Harvard University found supply chains – in which producers bought input goods, converted them into other goods and sold them to other producers – amplified the effects of technological improvements and price reduction.

“Longer production chains for an industry bias it toward faster price reduction, and longer production chains for a country bias it toward faster growth,” said the report.

continues in source: Longer supply chains ‘bring innovation and lower prices’

Longer supply chains ‘bring innovation and lower prices’ – Supply Management