Reconciling Your Supply Chain How to Make Controlling Risk Part of Your Post-COVID Strategy
By Brian Cromer
May 14, 2020
Balance your risk and regulatory concerns with cost, quality, and service level considerations to make sounder supply chain decisions.
For many decades, manufacturers have enjoyed the luxury of sourcing from just about anywhere in the world without having to worry too much about the risk factors involved with global operations. COVID-19 has changed the game, at least for the foreseeable future. And that means supply chain decisions are going to suddenly become more complex than they have been in recent years.
In the latest article from our supply chain experts, John Ferguson, and Brian Cromer present strategies and a checklist for rebalancing your supply chain for a post-COVID-19 world.
Download the reconciling your supply chain article and checklist for answers to critical questions, including:
How can you use the 80/20 rule to de-risk your network? How much is too much when it comes to assigning volume to one supplier?
What are the new priorities when it comes to choosing suppliers? The partner that provides the best cost, quality, and service may seem good on the surface, but is it really best for your business?
Are you fully optimizing your internal capabilities? Outsourcing certain elements of production is inevitable, but make sure you assess your internal capacity first.
Frequently Asked Questions
Why do manufacturers need to reassess their supply chain strategy after COVID‑19?
Manufacturers need to reassess their supply chain strategy because COVID‑19 exposed vulnerabilities that were previously hidden by stable global conditions. The article explains that long, cost‑optimized supply chains proved fragile when demand shifted rapidly and supply was disrupted. Post‑COVID, companies must reconcile efficiency with resilience to ensure they can respond to future disruptions without sacrificing customer service or profitability.
What tradeoffs must leaders balance when redefining supply chain strategy?
Leaders must balance cost, speed, and risk rather than optimizing for cost alone. The article emphasizes that lowest‑cost sourcing often increases exposure to disruption, long lead times, and limited flexibility. A reconciled supply chain strategy requires thoughtful tradeoffs that consider total cost, responsiveness, and reliability so the business can perform under a wider range of conditions.
How can manufacturers build more resilient supply chains without overreacting?
Manufacturers can build resilience by improving visibility, strengthening execution discipline, and designing flexibility into their networks rather than stockpiling inventory or making drastic location changes. The article highlights the importance of better demand sensing, supplier collaboration, and operational excellence to manage variability. This balanced approach allows companies to improve resilience while maintaining competitiveness and avoiding unnecessary cost.
Brian Cromer is Managing Director of TBM’s Global Supply Chain practice where he helps clients to make operational improvements, reduce working capital and improve service levels while lowering the overall cost to serve.
