COVID-19 has compounded pressures on global supply chains from trade tensions and rising operating costs and has uncovered a range of supply chain vulnerabilities for multinational companies. However, what companies can actually do about these challenges is more complex than simply reducing dependence on individual countries or reshoring.
Our experts recently held a webinar, How COVID-19 will shape global supply chains, to discuss our latest research and benchmarking data on how companies are thinking about the ways their supply chains need to evolve and become more resilient, and what the geographic distribution of supply chains will look over the coming years. They dive into the 7 most common supply chain vulnerabilities exposed by COVID-19 and the key actions your business can take to eliminate them. Where does your business lie? Check out the most common vulnerabilities and dive into detail in the full presentation below.
Excessive geographic concentration of key suppliers, lack of surge capacity to deal with sudden spikes in demand, insufficient information-sharing and visibility along the chain, and missed automation opportunities that render operations too vulnerable to unexpected labor restrictions have all proven to be major liabilities for businesses globally.
Companies adding production capacity, whether to reduce geographical concentration or to localize production in key markets, will have to deal with higher supply chain costs that they might not be able to pass on to their own prices. This could lead to structurally lower margins unless companies find ways to increase their pricing power, reduce their costs in other areas, or both.
In the video below, our experts share a 3-step process to address supply chain vulnerabilities:
- Regain control and visibility– Empower your supply chain risk management team, and obtain end-to-end visibility over your supply chain
- Quantify key liabilities– Identify key vulnerabilities, and subject them to supply chain shocks to assess the liability that they represent
- Identify and prioritize solutions– Build a solutions map for each sizeable liability based on impact, ease, and cost of implementation
Watch the full webinar presentation below:
Looking for more information about how to protect your global supply chains as the global economy strains to recover following the peak of COVID-19? Download the executive summary of our full report, World After COVID-19 Series: Supply Chains today:
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