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| 1 minute read

How COVID19 has changed behaviors and the supply chains that serve them

COVID19 has exposed the weaknesses of a globalised manufacturing system. In order to respond, suppliers, manufacturers and retailers need to rethink their supply chains. We have witnessed supply chain disruptions to a certain extent in a few countries during the first half of this year, and how the supply chain has moved from playing a “behind the scenes” organisational role to being a prime driver of the company business.

Global supply chain transparency is absolutely important.  However, at least for the short-medium term, considering the recent trade tensions that had been mounting; it makes sense to transform supply chain infrastructure from 'globalisation' to 'regionalisation' in order to establish a flexible and shorter lead time; also to encourage suppliers to source, assemble and deliver from their own backyards.

The human dimension is back, and it will play a key role in rebalancing the global supply chain during this crisis and going forward. Employees should be managed as a key asset of a crisis response program. 

Most organisations have done well in addressing immediate safety and stability concerns in light of this pandemic. However a full return to work requires organisation-wide commitment to a broader range of needs, focusing on not only arranging and maintaining their premises to support safe and healthy workforce operations, but also preventing any harm to the life, body, mental or physical health of their employees.  So a safe return to the workplace for both employers and employees should proceed in tandem with preventive actions and mitigation of potential risks in the workplace.

End-to-End Visibility Founder and president of global logistics research and consulting firm Logistics Trends & Insights, Cathy Roberson remarks on the importance of supply chain transparency and agility in our coronavirus themed podcast. Roberson points out that “Businesses need to monitor the environment. To understand and adapt to the changes in the markets and mitigating the possible risks internally, players needs to understand what is going on in the environment”. Employee Safety Crises also lead businesses to invest more in improving their environment, health and safety operations. Businesses which have an ability to monitor the full picture of the potential risks within the factory can give agile responses and mitigate the possible risks.

Tags

supply chain, covid19, ethical sourcing