Many supply chains have struggled to cope with the disruptions posed by COVID-19, says Professor Daniel Wong, Academic Director of the Master of Science in Global Supply Chain Management (MSGSCM). This is because most global supply chains have been optimized for cost and efficiency. In building a low-cost supplier base, companies increased their lead times and compromised their ability to react to disruptions. Many companies have also neglected geopolitical considerations and failed to leverage innovative digital technology.
Wong proposes an agile framework to help companies prepare for future supply chain disruptions. These include increased resilience, digital transformation, geopolitical awareness and participation in local thought leadership. Wong’s takeaways for businesses are to:
- think beyond cost
- include a budget line item for disruption
- leverage digital technology
- invest in collaborative supplier relationships
- prepare to adopt new regulations and mandates
The insights presented in this video are adapted from an academic paper that will appear in The Journal of Supply Chain Management, Logistics and Procurement in January 2021. Professor Wong wrote in collaboration with 2020 MSGSCM candidates Brad Mora, Haneen Abu-Khater, Choul Huda and Evan Woschnick.