Supply chain disruptions: Why a lean strategy is not always the best?

Abstract

In the pursuit of cheap material and labor most of the companies are relying on global sourcing. Globally spread supply chain networks are prone to disruptions, a small disruption in a country far from the actual market could cost millions of dollars to firms. Disruption due to Covid-19 is the most recent example. The global supply chain got disrupted due to lockdown and mobility constraints, which resulted into the shortage of raw materials for several companies which are heavily relying on global sourcing. Consumer electronics, automobile, and pharmaceuticals are some of the sectors which got adversely affected. In the report we will analyze the sources of disruptions, and the various strategies firms adopt for recovery.