Business Automation and Software Blog

Businesses are used to managing known supply chain risks. Transportation and supplier issues are something they can predict will happen at some point and take steps to mitigate their impact. Other risks, such as a global pandemic or a natural disaster, are the type of low-probability, high-impact events that companies likely did not foresee. Many did not plan for them and don’t know how to manage their supply chains faced with the ongoing pandemic threat, natural disasters, and disruptions that have taken place globally. Supply chain management is more challenging than ever in the face of these events.

This year, more than ever, supply chain management has experienced seismic shifts and changes. From economic pressures to trade disputes to the global health crisis, change in 2020 has been unpredictable at best. In addition, some problems have compounded as various companies shut their doors for COVID, and others shut their doors for good.

For so long, companies have placed efficiency at the center of strategy, focusing strategic thinking on “just in time.” This has meant running operations as close to full capacity as possible and ordering from suppliers in ways that tightly align with production schedules in order to minimize costs.