A Wake Up Call for Supply Chain Resiliency
It would be hard to overstate COVID-19’s impact on global supply chains. FTI Consulting’s supply chain experts conducted a survey to determine the breadth and scope of the pandemic’s effects, how organizations are dealing with the ongoing effects, and what concerns them as we move toward a post-pandemic world.
The survey was sent to supply chain executives and managers across the following industries: Automotive, Industrial, Chemicals, Food/Agriculture, Telecom Media & Technology, Retail/Restaurant and Pharmaceutical/Life Sciences.
Our survey aims to determine industry leader’s concerns and highlight the degree to which COVID-19 has dictated those concerns:
- Find out how their supply chain risk/resiliency has evolved due to COVID-19, and identify their current priorities.
- Understand views on near-shore/on-shore plans relative to both sourcing and manufacturing.
- Find out what types of supply chain disruptions were experienced and what actions were taken to respond.
- Understand their reliance on China in terms of sourcing and manufacturing.
- Evaluate their level of preparedness for risk.
- Understand the impact of tariffs on strategy and response.
The author’s analysis suggest that the impact of the pandemic was more than just a hit to revenue and supply disruption — it was a wake-up call relative to supply chain resiliency. Our survey indicates that supply chain professionals across industries are making adjustments to address their reliance on China, evaluating their global supply network and exploring options for on- and near-shoring.
Despite the negative impacts of the pandemic, respondents remain overconfident relative to their ability to respond to disruptive events. Most companies are concerned about the negative impact of tariffs on their supply chain and their ability to ensure supply chain continuity while keeping product prices low and their intellectual property secure.