Post Covid-19 Strategies to Reduce the Vulnerability of Supply Chains by Giovanni Atti, ADACI

IFPSM is pleased to share with you the “Post Covid-19 strategies to reduce the vulnerability of supply chains” study by Giovanni Atti (ADACI, Italy).

Please see below introduction to the ADACI’s study.

Post Covid-19 strategies to reduce the vulnerability of supply chains

COVID-19 pandemic has disrupted most businesses and challenged supply chains reliability. In a world where hazards are occurring more frequently causing ever greater  damage, and political instability generates uncertainty and makes every forecast less likely, making global value chains more resilient and managing procurement risks has become vital.

Covid-19 pandemic should be over and the preparation of a reliable relaunch plan becomes the key priority for many organisations. Several procurement leaders consider the need to reimagine their procurement function and supply chains to move towardsa new operating model that’s fit for the new normal. The preparation of such plan implies both microeconomic and macroeconomic knowledge. Proper supply chain selection and management has become so important that President Joe Biden has issued an Executive Order on America’s Supply Chain’ and has required the supply chain review for 4 industries. The terms resilience in on everyone’s leaps, but regardless of its definition what does it mean in operational terms? How is the resilience process structured?

To favour the knowledge of the factors that shoud be considered in drafting any medium-long term resilient plan, ADACI has prepared a study on the matter. It takes into account the content of the reports listed below and is supplemented by research conducted by its R&D Committee.

With the aim to contribute to the dissemination of knowledge, ADACI makes available such  study to the members of the IFPSM, and hopes that the mutual exchange of data and information will become a recurring practice.

List of reports considered:

● Covid-19 value chains: options for reshoring production back to Europe in

              a globalised economy’ published by the EU Policy Department for External Rela-

              tions in March 2021,

          ● Elisa Martinelli, G.Tagliazucchi (2018). Resilience and Enterprise. The impact of

              natural disasters on small retail businesses. Milan: Franco Angeli. 

          ● ‘World Investment Report 2020 focused on International Production Beyond the

              Pandemic’ issued by Unites Nations Conference on Trade and Development

              (UNCTAD),

          ● McKinsy Global Institute: ‘Risk, resilience and rebalancing in global value chains’,

              August 2020,

          ● Reshoring Initiative 2020 Data Report,

          ● ‘Executive Order on America’s Supply Chain’ The White House, February 24, 2021

              Presidential Actions,

          ● Building Resilient Supply Chain, Revitalizing American Manufacturing, and  

              Fostering Broad-Based Growth 100-day Reviews under Executive Order 14017

              June 2021 (focused on semiconductors manufacturing and advanced packaging,

large capacity batteries, critical minerals and materials, pharmaceuticals and   

active pharmaceutical ingredients).