Supply Chain resilience after COVID-19: strategies for risk management

By Luigi Geppert and Pietro Negri

Supply Chain resilience after COVID-19: strategies for risk management

Written by: Pietro Negri, Luigi Geppert

The recent outbreak of COVID-19 has shown how fragile globalized supply chains are. Supply chain vulnerability is greater in articulated supply chains and represents the drawback of running efficient value chains. This vulnerability, although intrinsic, needs to be carefully examined and constantly monitored throughout activities of supply chain risk management.
In this article we propose our framework for supply chain risk assessment and mitigation. This framework is based on the use of simulation techniques focused on the estimation of risks’ impacts and at the analysis of scenarios.
The methodological approach is divided in 3 main parts:

  • the establishment of a supply chain risk management strategy;
  • the deployment of the strategy with practical activities targeted at different knowledge areas;
  • the modelling of the supply chain, and its related risk events, which will enable to conduct scenario analysis and evaluate risk impacts under different conditions.

The article will also cover some useful advice on how to overcome the major barriers that can be faced when setting up a supply chain risk management strategy and on how to transform the processes of risk evaluation and control into a recurrent activity.