Sustainability to Survivability the Supply Chain post COVID-19 Q9

A: Roger Needham
Senior Supply Chain Consultant
IBM Sterling Solutions, IBM Europe

Yes I do – But I would suggest this should only happen after full business impact considerations which may vary across business sectors. Many recent supply chain challenges have thrown the subject into focus in light of the notable move to offshore some 15-20 years ago. Whilst this move was initially prompted by unit cost of purchasing products, recent trends have become ever more focused on ‘total landed cost’ providing a more realistic insight to the true business cost of a global supply chain.

Recent events will undoubtedly prompt more organisations globally to better evaluate not only the direct monetary cost on the P&L, but also to understand the longer term service implications which if not fully understood, could lead to customer confidence ebbing away, if accurate ‘available to promise’ and ‘on time in full’ commitments cannot be met.

As with most issues across complex supply chains, there is no one silver bullet, but I am certain that technological, AI and IoT solutions will enable organisations to assess these complex trade offs more quickly and accurately.

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