Supply Chain Discussion: How Will Supply Chains Be Impacted by Economic Uncertainty?
In this discussion, Andrea Sordi (who is a lecturer in the Supply Chain Management Department at the University of Tennessee) talks about lessons learned by retailers from the last three years. And also how they're transforming their supply chains in the face of a possible recession.
Having suffered through three years of swings in supply and demand, retailers now are looking to redesign planning and forecasting practices. The effort signifies a realization that planners must take into account many more variables than they considered prior to the pandemic.
“The last three years were not the norm, but they have left some consequences. There’s a need to define the parameters of what planning is going to look like.”
- Andrea Sordi
The situation seems to change weekly, as economic and geopolitical events fuel uncertainty. Against that backdrop, there’s the additional prospect of a possible recession, although experts don’t agree on when and whether that will occur. Nevertheless, they’re taking certain steps now to make their supply chains more resilient regardless of what happens, including building up buffer stocks to counter supply interruptions, and diversifying sourcing to reduce the risk of relying on just one supplier for critical materials or products.
That caught Nucleus's attention. Diversifying sourcing to reduce risk. Our multiple customer, multiple carrier 4PL business model allows our customers to never be reliant on any single carrier or service provider.