COVID-19: A New Era For Supply Chain Risk Management?
Coronavirus exposes fragilities and the interconnectedness of the supply chain system. As such, ‘risk’ has been bought to the fore and sits atop board level agendas globally. When we return to the ‘new normal’, how will be the relationship between risk and supply chain optimization unfold?
• Asses your global sourcing model, including geographic diversification of sourcing partners, and weighing-up offshoring Vs onshoring, considering expertise and material availability, production flexibility and transport costs
• Address the need for resilience in your supply chain network design, including scenario analysis to ensure your supply chain is resilient in the face of future disruption
• Map out your global supply chains to identify the scope for prudent choices in the selection and location of suppliers, diversifying modes and regions to de-risk your operation
• Evaluate inventory policies, considering the cost-benefit of Just-in-Time Vs Just-in-Case manufacturing and the trade-off between system responsiveness, optionality and inventory management costs