Max HenryFounder & Executive Director, Global Supply Chain Council (GSCC) · Founder & Executive Director at Global Supply Chain Council (GSCC)

The Impact of COVID-19 on Supply Chains: Adapting to the New Normal

14 Apr 2024 · 1 min

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In this brief segment, the speaker argues that the COVID‑19 pandemic served as a stark wake‑up call, exposing how quickly supply chains can be disrupted. He notes that prior to the crisis, supply chain practices were built over decades with a focus on cost reduction and service improvement, but the pandemic demonstrated that these systems could be shattered overnight. This realization has shifted perception, prompting organizations to view supply chain management as a strategic, core function rather than a peripheral cost center. The speaker predicts that this new strategic framing will fundamentally reshape how supply chains are designed and operated moving forward.

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Well, I think that COVID-19 was a wake-up call in the past, but it took us decades to build it. And it was extremely well established and well defined. And every time we wanted to find a cost reduction while improving services, and this took a lot of time to build. The COVID-19 was a wake-up call saying that from day 1 to day 2, everything can be destroyed. And suddenly, and I would say this is good as well for the supply chain as a function, suddenly everyone had a complete different look at the supply chain. And considered, and consider now that supply chain is a strategic function. It will be completely different from what we see today.