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Supply Chain Graphic of Week: Adding New Components to the Suppy Chain Model

 

Time to Focus on Resilience, Agility, and Sustainability

 

July 27, 2022

 

 

Changes wrought by the pandemic, disruptions and more have placed unprecedented importance on the supply chain, giving "Forward-thinking chief supply chain officers (CSCOs) ....a once-in-a-generation opportunity to future-proof their supply chains."

 

So say the consulants at McKinsey, in a recent post on the company's web site.

 

But to do that, McKinsey says, CSCOs need to add three new priorities to the function’s traditional objectives of cost/capital, quality, and service - and redesign their supply chains accordingly.

 

As seen in the graphic below, new to the supply chain mix should be resilience, agility, and sustainability.

 

 

Source: McKinsey

 

 

"These new priorities of resilience, agility, and sustainability can’t be tacked on to existing supply chain setups. Realistically, they will need to be built in from the foundation and considered in every element of supply chain design, organization, and operation, " McKinsey concludes, adding that "For many companies, that will likely require a change in mindset from the top."

 

Any reaction to our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback button below.

 

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