Supply chain restructuring has been accelerated by the COVID-19 pandemic, but don’t expect companies to abandon China.
The COVID-19 pandemic has been disruptive for supply chains as businesses grapple with fluctuations in supply and demand, intermittent outbreaks, and speculation about re-shoring and reducing reliance on China. Yet predictions about how supply chains are changing are overblown, according to two experts.
In an article for MIT Sloan School of Management, Sara Brown reports on two recent web presentations, by MIT professors and supply chain experts Yossi Sheffi and David Simchi-Levi. They offered their thoughts about reliance on China, the possibility of re-shoring, and how supply chains will – and won’t – change in the era of COVID-19. They offered the following four key insights.