Chokepoints: How to respond when the global economy gets squeezed
Executive Take
Leaders should treat supply-chain resilience as an ongoing operating discipline, not a one-time contingency plan triggered by crises like Hormuz tensions.
Executive Summary
McKinsey highlights the Strait of Hormuz as an example of global "chokepoints" disrupting supply chains, arguing companies must manage risk three-dimensionally via three strategies: rerouting logistics, replacing suppliers, and substituting inputs or materials.
Why It Matters
Technology and GCC leaders overseeing global operations and supply chains need frameworks for responding to geopolitical chokepoints that can disrupt logistics, sourcing, and costs with little warning.
Bizquad Perspective
The "reroute, replace, substitute" framework is sound but understates how many firms lack the real-time visibility needed to execute any of the three fast enough to matter.