As the world grapples with the human and economic crisis unravelling before us, supply chains are finding themselves squarely within the public eye and experiencing unique challenges of their own.
First, the supply shocks
For weeks at the start of the year, as COVID-19 was taking its toll on China, experts were focusing on ‘supply shocks’. These were disruptions to the availability of goods sourced from China; both finished goods for sale and products used in factories in developed markets. Companies scrambled to sort out what production was feasible, and what demand could be met.
At that moment, it made sense to think of supply chain resilience. We have previously talked about the lessons learned on resilience for global value chains under threat and the five supply chain resilience levers companies should put in place.
Some companies will already have integrated these learnings while others, in the interests of costs, and at the sacrifice of agility and resilience, have been relentlessly consolidating production and extending sourcing.
About the Author:
Dr. Richard Markoff has spent the last 25 years as a supply chain executive, academic, consultant and coach. With his broad supply chain and operations expertise, he provides valuable insights to Innovotive’s client companies.