Robust or Efficient Supply Chains – That Is the Question

Bernhard Simon, CEO of Dachser, poses the question of whether the Corona pandemic will lead to permanent changes in the supply chain. And what lessons can be learned from it? He does not consider a pure localization or regionalization of supply chains advisable, but rather a wise distribution of the load across multiple shoulders.

(Kempten) What are the lessons from the current crisis? Bernhard Simon, CEO of DACHSER, on the future of global goods flows:

“Will the Corona pandemic lead to a permanent change in global goods flows? Decision-makers in companies and government organizations must now carefully examine the extent to which their previously widely dispersed value chains pose risks and how they can adapt to the new conditions.

Such waves are certainly nothing new in global supply chain management. This was already the case after the global financial and economic crisis over 10 years ago. Essentially, it is about the decision of whether supply chains should be designed to be as robust or as efficient as possible. In recent years, the latter has dominated: logistics was primarily seen as a cost factor in purchasing that needed to be optimized. Under the impression of the Corona crisis, strategic management will now have more influence. This positions logistics as a holistic discipline within the board. In terms of robust supply security, it then builds alternatives that can replace each other.

Drawing the Right Lessons from the Crisis

It is not about regionalization or globalization, but about consciously managing risks: complete nationalization or regionalization of the supply chain, e.g., in the area of medical protective equipment, is just as suboptimal and risky as sourcing all products from one country. The art lies in building robust supply networks that intelligently incorporate local suppliers as well as sources from China, the USA, and Europe. If supply chains gain agility, flexibility, and resilience in this way, then the right lessons from the current crisis have certainly been learned.

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