Vol. III (2022), No. 1
AFTER COVID-19: SUPPLY CHAIN CHANGE
Jeremy Cripps
University of Maryland, USA
Review article
DOI: https://doi.org/10.47954/ijcbe.3.1.4
JEL Classification: L25, L66
Abstract
Worldwide indexes confirm supply chain disruptions are ‘historically high’ and as the Economist makes clear ‘uncertainty lies ahead.’ After Covid 19, and now in the context of the war in Ukraine, “disaster” is real. The purpose of this paper is first to identify the levers, the key visible breakdowns in Covid 19 impacted supply chains. Then to identify the fulcra” that maybe “really important and relevant” to supply chain change. Resilience to pandemic breakdown in supply change are considered in five key areas. The resilience of supplier networks has been tested. Despite measured environmental benefits from reduced traffic delivery delays. Despite significant growth in the air cargo market delays are only just past their peak. The resilience of employment is being challenged as greater productivity, happier and health workers and lower emissions has demonstrated the importance of ‘the physical dimension’ of work and opportunities taken to switch occupations. The resilience of the component parts of products and services has become the new watchword as interruptions in the source and supply of critical components has promoted search for substitutes. Reshoring and reinvention identify how bringing back, with innovative technology, a skilled workforce, tax incentives, means improved innovation and product differentiation. The resilience of supply chains to adapt quickly is marked by the prominence of consulting firms who have advanced supply chain monitoring technology and weaponized the supply chain. The trend for economic spheres to develop to insulate companies from geopolitical concerns. There is an ongoing acceleration of slowbalization. The resilience of technology means reshoring of the apparel, food, and beverage industries, among others, is becoming cost-effective. Predictive control strategy, still in its infancy, with modelling and optimization is becoming the work horse for supply chain management. The paper concludes with an assessment of the levers and fulcra for supply change.
Key words: supply chain change; supply chain disruptions; supply chain symptoms; supply chain resilience
Full text
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