How has the pandemic shifted the way organisations manage their supply chains?

Why supply chains are taking centre-stage?

Before delving into how companies have shifted their approach to supply chain management, we must first outline exactly why supply chains are taking centre-stage.

Historically, after a turbulent period or what business jargon would classify as a black swan event (i.e the 2008 financial crisis), organisations tend to adjust aspects of their mode of operation. In the case of the finance industry, official institutions were forced to “stress test” their balance sheets to “assure preparedness for an economic shock.” Tech companies also faced the same fate after the mass uprise in cyber security attacks. Following the pandemic, supply chains are predicted to follow a similar path with stress tests becoming somewhat of a new standard.

The reason behind this is that supply chain vulnerabilities have and continue to threaten the standing of many corporations. Some supporting statistics have previously indicated that these issues were so dire following COVID that they resulted in up to 75% of companies experiencing negative impacts on their business.

Considering this, it follows then that supply chains have now become characterized as protagonists, or rather, central engines driving the profitability and well-being of companies all over the world. Many organisations recognise this and are now citing their supply chains as primary sources of profitability and value creation. Examples can be seen in many different organisations, including the likes of finance company Charles Schwab Corp. and utility firm Alliant Energy Corp.