The Coronavirus has upended many aspects of life. Here, we focus on some key lessons for managers in manufacturing firms in charge of strategic sourcing decisions. That is, managers responsible for selecting and managing upstream suppliers.
By John V. Gray and Finn Wynstra · May 5, 2020
The Coronavirus has highlighted some things that companies have always needed to do, but may have become a bit complacent on due to the lack of a major disruption event in recent years. After the 2008 financial crisis led to supplier bankruptcies, and the 2011 Thai Floods and Japanese Earthquake/Tsunami upended supply chains in several industries, companies put more focus on supply chain risk.
Typically, this was focused on avoiding disruptions caused by one or a small set of suppliers that were unable to meet demand, either due to bankruptcy or an inability to produce or ship due to a local (or perhaps regional) event. Typical solutions included excess inventory and redundant supply.