STABLE SUPPLY CHAINS ARE THE ALPHA AND OMEGA.

A recent study by the consulting firm McKinsey clearly shows that most companies have done too little to learn from the crisis and significantly improve the stability of their supply chains. During the crisis, the most common way to respond to disruptions was to increase inventories, especially of critical products. This was and is feasible and effective in the short term. In the long run, however, this approach is of limited use. For many years, supply chains have been globalised and optimised to save costs. However, this has made them vulnerable. But switching from a “just-in-time” orientation to a “just-in-case” strategy cannot be the ideal solution either. It would simply be too costly and inflexible in the long run. According to the McKinsey consultants, two essential factors for stabilising supply chains in the medium to long term are nearshoring and the use of digital technology. What the study also shows, however, is that many companies do not achieve planned, long-term measures and goals such as regionalisation or the expansion of the supplier portfolio.