McKinsey: supply chain resilience post-COVID-19
Over the past 20 years, global supply chains have become standard in the industry. But, procurement and supply chain professionals have faced a number of ever-more-frequent global and regional challenges in recent years, from natural disasters to accelerating trade tensions between major economic blocs. As a result, there has been a clear shift in focus to the challenge of mitigating risk and assessing the resilience of supply chains.
COVID-19 has highlighted the importance of supply chain resilience in the modern supply chain. It has showcased that even brief, 30-day disruptions caused by supply chain vulnerabilities can result in 3-5% EBITDA margin gaps. With companies seeking new ways to reduce their exposure to supply chain risks, McKinsey estimates that up to $1trn in trade flows in the industrial sector could be rebalanced, with a few countries having the potential to become major destinations of relocated production.
In addition, advances in technology along with the large-scale adoption of automation and digitisation have resulted in the decreased focus on labour cost, further scaling the need for companies to test their supply chains holistically for cost, speed and risk. According to recent McKinsey surveys before and after the COVID-19 pandemic, the percentage of executives saying they expected to increase their organisation’s resilience by rebalancing their supply chains has risen from 70% to 93%.
Measuring the balance between supply chains’ cost and risk means companies must be vigilant. They understand the risks facing their supply chains as well as the mitigation strategies available to minimise those risks. Companies can often choose from a number of risk-mitigation options. For example, certain industrial companies have found that shifting component-production locations can mean a 20% decrease in cost, as well as reductions in logistics and trade risks. By comparison, the same parts can be manufactured domestically with only a 5% cost increase by leveraging Industry 4.0. With supply chain risks always changing, the stress test can’t be a one-off exercise and should be conducted on an ongoing basis.
The time to reimagine supply chains and introduce enhanced capabilities is now, as more opportunities for companies continue to capture first-mover advantages. In a complex, fast-changing and unpredictable environment, there is no simple task, and based on the value at stake, the C-Level will need to be in the driver’s seat. However, a resilience stress test provides a key first step in monitoring risk and helping develop a blueprint.
The Ultimate Procurement & Supply Chain Event
From September 28th-30th, network with C-level executives, gain insight from industry pioneers and walk away with actionable insights that accelerate your career. By the end of the week, we promise you’ll have the skills to solve the world’s most pressing supply chain and procurement challenges.
The three-day show is an essential deep dive into the industry, with influential speakers sharing insights and strategies from their organisations, group roundtable discussions, and fireside chats. Whether you attend virtually or in person, you’ll strategise how to cope with global disruption, learn from industry leaders, and walk away with tips, tactics, and tangible connections.
How to Attend
In a COVID-disrupted era, we know that the majority of people would rather avoid travelling for events─why take the risk, right? In response to the continued disruption, BizClik Media Group has decided that Procurement & Supply Chain LIVE will offer the best of both worlds through hybrid accessibility.
That means you and your peers can attend the event in person or virtually ─ with no disadvantages for people who choose not to make the trip to the Tobacco Dock venue.
Procurement & Supply Chain LIVE will be held at the Tobacco Dock in London, an industry-leading venue that is renowned for delivering world-class events. For attendees’ peace of mind, the venue is working to the government-endorsed AEV All Secure Framework, alongside mia’s AIM Secure and ‘Good to Go’ accreditation, they will ensure that we achieve a COVID-secure environment to facilitate all of your networking needs.
Our physical venue is both historic and stunning, but it has no bearing on the information that you and your peers can gain from the event. You can still absorb it all, interact with other attendees, and enjoy the conference experience on your alternative, virtual platform.
The platform will feature live feeds from all of the stages, as well as virtual networking areas. So, if you want to avoid travel, it’s not a problem! You can still get involved and enjoy the entire experience from the comfort of your own home.
What’s on the agenda?
With keynote addresses from global leaders, dynamic roundtable discussions, and extensive networking opportunities, Procurement & Supply Chain 2021 will expand your network, deliver insight, and enhance your organisation’s reach.
Across the three-day event, a number of relevant topics and trends surrounding procurement and supply chain will be discussed.
- Tuesday 28 September - Digital supply chain
- Procurement strategy (11:30 am)
- Supply chain leaders forum (12:00 pm)
- Women in supply chain (14:00 pm)
- Procurement technology (14:30 pm)
- Wednesday 29 September - Procurement consulting
- Sustainability (11:30 am)
- Supply chain management (12:00 pm)
- Digitalisation (14:00 pm)
- Risk & Resilience (14:30 pm)
- Thursday 30 September - APAC sessions (04:00 am)
Influential executives from around the world will give their insights and professional experiences surrounding these topics, allowing you and your company to leave with valuable information.
The past year has shown how important supply chains are and the importance of managing them correctly. With increasing digitalisation across all industries, you won’t want to miss out on our great speakers and information surrounding this topic. Preparing your company for the future is key, and we are sure you will gain great insights at our three-day event.
Order now to make the most of our early-bird offer. Ticket prices increase over 50% soon! For tickets and information, head over to our event site.