The statistics have been staggering. Supply chain disruptions have cost companies an average of $182 million in lost revenue, according to an Interos Supply Chain report. Additionally, there are many unhappy customers in the wake of these disruptions. The bottom line is that the global supply chain has gotten completely out of alignment, and it isn’t a simple or quick fix to rebalance and right-size the supply chain.
During COVID, the wild swings, shutdowns, and impacts of the global supply chain caused links in the end-to-end supply chain to bring the system to a halt. For example, when the U.S. shut down at the beginning of the pandemic, demand quickly dried up for apparel goods and skyrocketed for computers, electronics, and safety gear. However, the items purchased 13 weeks prior were already on the ocean, at the ports, and on the way to distribution centers.