China, USA, EU: How your company can successfully navigate a multipolar world – Image: Xpert.Digital
Global supply chains at their limits: Why the global economy needs to be rethought
### Friendshoring instead of globalization? Why political friends are becoming more important than cheap production ### AI and blockchain in logistics: Will these technologies save our security of supply? ###
From growth engine to risk: How geopolitical crises change the global economy forever
The era of carefree globalization, in which companies optimized their supply chains almost exclusively based on cost and efficiency, is coming to an end. For over three decades, internationalization was considered an unstoppable engine of growth: new markets opened up, production sites were relocated to lower-cost regions, and global value chains seemed infinitely scalable. But this paradigm is now being fundamentally questioned. Geopolitical tensions, the experience of the pandemic, trade conflicts, and the increasing urgency of sustainability have exposed the fragility of these complex networks. The discussion no longer revolves solely around the opportunities, but above all around the risks of an interconnected world – for our security of supply, economic stability, and strategic independence.
A key reason for this change is the transition to a multipolar world. But what exactly does that mean? A multipolar world describes a global order in which economic and political rules are no longer determined by just one or two superpowers (such as the USA and the Soviet Union, or later the Western world around the USA and the EU). Instead, there are now several influential centers of power operating simultaneously. Countries such as China, India, the ASEAN states, and emerging economic regions in Africa and the Middle East are actively shaping the global rules of the game. They contribute their own economic models, technological standards, and political interests. For internationally active companies, this means a significantly more fragmented and unpredictable landscape. A unified global market is being replaced by different economic blocs with different values and regulations.
In this new, complex environment, logistics is shifting from a mere service provider to a strategic center. It is the backbone of global trade and determines how resilient companies and entire economies are to shocks. When ports are blocked, containers become scarce, or trade routes become uncertain, it becomes clear that logistics is far more than transporting goods from A to B. It is a crucial factor for competitiveness, security, and prosperity. This article explores how internationalization is being reshaped in a multipolar world, the strategic adjustments companies are making, and why digital technologies such as AI and blockchain are essential for managing the supply chains of the future.
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The internationalization of the economy and the role of logistics in a multipolar world
Why is the internationalization of the economy such a hotly debated topic today?
Globalization has progressed significantly over the past three decades, opening up new sales markets, more favorable production locations, and diverse opportunities for cooperation. At the same time, geopolitical tensions, trade barriers, and an increasingly multipolar world order are making this internationalization process more complex and risky. The discussion therefore revolves around the opportunities of a globalized economy, but also its risks for supply chains, locational attractiveness, growth, and security.
To what extent does logistics play a key role in this?
Logistics is the backbone of international value chains. A global economy is unthinkable without functioning transport, warehousing, and distribution systems. Especially in times of crisis, the vulnerability of complex networks becomes apparent – for example, when port blockades, container shortages, or political embargoes destabilize entire supply chains. Logistics not only ensures the physical flow of goods, but also security of supply, economic stability, and the ability of companies to compete.
Internationalization in a multipolar world
What does the term “multipolar world” mean in relation to the economy?
A multipolar world describes an international order in which several countries or regions are simultaneously economically, politically, and technologically influential. In the past, the global economy was more bipolar—with clearly dominant centers of power such as the US and the EU, or at times, the US and the Soviet Union. Today, there are additional players, including China, India, the ASEAN states, the Middle East, and emerging African countries, that help shape trade rules and contribute their own economic models. For companies, this change means a more fragmented, but also more diverse, international landscape.
What impact does this have on internationally active companies?
For companies, the complexity of markets is increasing. Standards, laws, and cultural frameworks are becoming more diverse, political risks are increasing, and strategic alliances must be reassessed more frequently. At the same time, a multipolar world opens up opportunities for diversification, market proximity, and innovation partnerships. The ability to actively monitor geopolitical developments, simulate scenarios, and develop flexible strategies is crucial.
Can one say that geopolitical risks are significantly more important today than they were 20 years ago?
Yes. Two decades ago, globalization was in a phase of optimism and was viewed almost exclusively as an engine of growth. Trade liberalization, the opening of China, and EU enlargement promoted integrated markets. Today, however, issues such as economic sanctions, tariff disputes, technological conflicts, and energy dependencies are crucial. Companies must incorporate geopolitical risk management into their core strategies instead of viewing it as a mere "sideline."
Global supply chains as a strategic factor
Why are supply chains so much more complex today than they used to be?
On the one hand, production chains are more fragmented: raw materials originate from one country, intermediate products from another, final production takes place in a third, and the sales market is located in other regions. On the other hand, dependencies on suppliers are emerging, which, if they fail, can jeopardize entire value chains. In addition, digital platforms, e-commerce, and high customer expectations for fast delivery are creating additional pressure. Complexity here means not only the number of players, but also the multitude of uncertainties that must be managed simultaneously.
What key challenges arise from this?
First, the risk of disruptions, such as natural disasters, pandemics, or political conflicts. Second, cost increases in global transport chains, for example, due to rising energy prices or infrastructure bottlenecks. Third, the need for transparency, as consumers, investors, and regulators increasingly question sustainability, fair working conditions, and CO2 emissions in supply chains. Finally, the dynamic nature of the situation requires companies to create agile systems to respond quickly to changes.
Why does supply chain resilience play such a central role?
Resilience means adaptability, resilience, and the ability to recover quickly from shocks. For companies, this is essential for survival: The failure of key suppliers, a lack of transport capacity, or extended production shutdowns can jeopardize entire business models. Resilient supply chains can mitigate risks, activate alternative routes more quickly, and secure the trust of customers and investors.
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Business-to-business (B2B) trading platforms have become a critical part of global trade dynamics and thus a driving force for exports and global economic development. These platforms offer significant benefits to companies of all sizes, particularly SMEs – small and medium-sized businesses – which are often considered the backbone of the German economy. In a world where digital technologies are becoming increasingly prominent, the ability to adapt and integrate is crucial to success in global competition.
More about it here:
Hybrid globalization: How companies manage risks intelligently
Strategies for adapting global companies
How are companies specifically responding to the uncertainties?
Companies pursue different approaches:
- Diversification of suppliers and production sites to avoid dependencies.
- Regionalization of important production steps, often referred to as “nearshoring” or “friendshoring”.
- Building strategic partnerships along the value chain to achieve long-term planning security.
- Investments in digital platforms and transparency solutions to enable accurate decision-making at all times.
- Sustainability orientation to comply with regulatory requirements and strengthen brand values.
What does “friendshoring” mean in this context?
Friendshoring refers to the political and strategic decision to relocate production chains to countries that are considered politically stable, economically reliable, and based on partnerships. Instead of focusing solely on cost optimization, companies prioritize political reliability and shared values. This trend is primarily driven by geopolitical tensions between democracies and authoritarian states.
Is nearshoring a contradiction to globalization?
Not necessarily. Globalization doesn't necessarily mean that every production step has to take place as far away as possible. Rather, it's about the integration of global markets. Nearshoring is a reaction to excessive dependencies that have called globalization into question. Companies today combine global reach with regional robustness—a "hybrid globalization" that simultaneously embraces reach and security.
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Digitalization as a key factor in logistics
What role do digital technologies play in modern logistics?
Digital technologies are the enabler of transparent, efficient, and resilient logistics. They make it possible to link data from diverse sources, communicate with partners in real time, and create forecasts for risks, demand, and capacity bottlenecks. Without digital tools, today's complexity would be almost impossible to manage. The trend toward the "smart supply chain" is making data the most important management tool.
Can you specifically name the most important technologies?
Yes. Three key technologies are particularly noteworthy:
- Artificial Intelligence (AI) – to forecast demand, identify patterns in disruptions, and automate decision-making processes.
- Blockchain – for tamper-proof documentation of transactions, proof of origin, and fraud prevention.
- Internet of Things (IoT) – for real-time monitoring of transport, inventory levels and machine status.
Is AI already practically applicable in logistics?
Yes, increasingly. AI is now being used in forecasting systems (such as sales or demand forecasts), route planning, predictive maintenance for machinery, and automated freight calculation. Its advantage lies not only in speed, but above all in the recognition of patterns that human planners might miss. However, the quality of the forecasts remains highly dependent on data quality and existing infrastructure.
What advantages do blockchain solutions offer in supply chains?
Blockchain creates an immutable, shared ledger of transactions that all involved parties can access. Especially for international deliveries where documentation, customs duties, or proof of authenticity are important, blockchain increases security and reduces verification effort. One example is proof of origin for raw materials such as cobalt or palm oil – here, consumers and regulators are increasingly demanding transparency, which blockchain can ensure.
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What role does IoT play specifically?
IoT connects objects and thus provides real-time data. For example, sensors in containers can continuously transmit temperature, humidity, or location. This is crucial for sensitive goods such as food, medicines, or semiconductors. An IoT-based supply chain is characterized by transparency, predictive management, and the ability to respond immediately to deviations.
Effectiveness of these technologies – a critical view
Are these technologies really that effective or are they overrated?
Effectiveness depends on implementation and context. Many pilot projects demonstrate impressive scenarios, but in practice, high costs, a lack of standards, or poor data quality often delay widespread impact. While AI provides widespread benefits in forecasting, blockchain is still in the selective application stage in supply chains. The IoT, on the other hand, has already established itself firmly in the area of tracking and monitoring. In short: effectiveness is not automatic, but the result of expertise, willingness to invest, and organizational maturity.
What are the biggest obstacles to implementation?
First, there are high investment costs in technologies, systems, and training. Second, there is interoperability between different IT systems, which can vary considerably depending on the country and industry. Third, there are regulatory requirements regarding data protection, particularly in the EU. And fourth, there is acceptance within the organization: Digital transformation often fails less due to technology than due to resistance in processes and structures.
Is it still worth using today?
Yes, especially for companies with highly complex supply chains. Increased efficiency, reduced risk of failure, and greater customer satisfaction already pay off in the medium term. Nevertheless, a differentiated approach is useful: Smaller companies without international supply chains may not need a blockchain solution, but standardized software for inventory and logistics is often sufficient. Therefore, digitalization is not an end in itself, but must be evaluated in relation to the risk-benefit profile.
International business and logistics of the future
How will supply chains evolve over the next ten years?
We are likely to see greater regionalization combined with global connectivity. Supply chains will become shorter to reduce risks, but remain international to secure cost advantages and market access. Digital platforms will also create so much transparency that companies can manage their networks in real time. AI will increasingly automate decisions, and sustainability will become a criterion on par with cost and quality.
Which political developments are crucial for this?
Trade regimes, standardization agreements, energy policy, and security alliances are crucial. If the world were to break up into isolated economic blocs, supply chains would become more fragmented and expensive. However, if multilateral rules and technological standards are successfully established, global integration remains possible. Geopolitical stability in regions such as the Indo-Pacific and Africa also has a major impact.
What role will sustainability play in the future?
Sustainability is becoming a competitive factor. The EU requires supply chain transparency regarding environmental and social standards, and other countries are following suit. Companies that fail to operate sustainably risk market losses, reputational damage, and regulatory penalties. At the same time, this opens up opportunities for new business models, such as circular supply chains, low-emission transport, or digital CO2 tracking systems.
Can we say that logistics has become a political issue?
Yes, definitely. Today, logistics determine food security, energy availability, and technology locations. States recognize that their economic and security policy ability to act depends significantly on resilient supply chains. This is evident, for example, in national strategies for critical raw materials, in discussions about supply chain sovereignty in Europe, or in the debates about Chinese dependence on rare earths.
Economic Transformation: Strategies for a Connected and Sustainable World
The internationalization of the economy is no longer a linear process characterized by unstoppable liberalization, but is being reshaped by a multipolar world order. Logistics is the decisive field in which resilience, competitiveness, and sustainability manifest themselves. Modern technologies promise great advances but also encounter practical obstacles. Companies must therefore simultaneously consider geopolitical dynamics, technological innovations, and societal demands to position themselves successfully. The future belongs to those who can think globally and locally, digitally and sustainably.
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