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Our interconnected global economic system exposes businesses to a broad range of risk factors, with more potential points of failure and less room to absorb delays and disruptions. Operating in an environment of volatility, uncertainty, complexity, and ambiguity appears to be the new status quo.
Supply competitiveness has been mainly a matter of maximized efficiency/asset utilization and minimized cost/inventory. During the COVID-19 pandemic, however, we have seen that an acute focus on efficiency does not bode well when supply becomes constrained due to uncontrollable external events.
This paper addresses strategic aspects for boards to consider and questions aimed to satisfy the board that appropriately robust supply chain security and agility measures are in place.
See the full list of papers in our On the Radar series.