For the very first time in history, a third of the world population has been in lockdown due to the Covid-19 crisis. This has caused major disruptions in the global supply chain network. Furthermore, these disruptions are expected to increase in frequency and magnitude. For instance, due to the fact that natural disasters will increasingly occur due to global warming. Geo-political conflicts such as the recent trade war between the US and China or the Brexit provide additional examples of similar sources of supply chain disruptions.
During the last decades, Supply Chain teams were under a constant pressure to minimize inventories and cut costs. Figure 1 is showing the worldwide dependency on China as “the world’s factory” caused by a never-ending hunt for the lowest price. The major impact that COVID-19 is having should as a consequence not come by surprise. Many companies were not fully aware of the vulnerability of their supply chain until this point in time.