It’s common to hear about how the Covid-19 pandemic has disrupted supply chain operations. Supply chain leaders are navigating one of the most difficult periods in recent history, and it’s impossible to foretell an end to global disruptions. What many don’t realize, however, is that the pandemic exacerbated issues in our global supply chains that have already existed.
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Global supply chains are the most complex they’ve ever been, and the lean, just-in-time model of traditional supply chain management has left little room for error when disruptions do occur.
Companies today, such as global consumer brands, depend on vast networks of external partners to produce and package new products. The advantages of this approach are increased diversification, specialization, and cost-effectiveness. However, the disadvantage of decentralized control leads to increased exposure to disruption. A catastrophic event in one region now has the potential to affect a supplier or brand halfway across the globe.
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