How to Keep Supply Chains Reliable When the World's Upended

Photo of the back of a worker in a warehouse assembling supplies

The COVID-19 pandemic has shown how fragile our supply chains are as companies have moved production overseas to keep a "lean" inventory. Most firms have factored in risk of disruptions when designing supply chains but usually don't factor in the aggregate risk to the industry. Kostas Bimpikis, associate professor of operations, information and technology at Stanford Graduate School of Business, studies supply chains and notes that while companies have achieved targeted business goals but fail to protect the resilience of the network as a whole, there might be a role for government to monitor critical supply chains to ensure they remain viable in times of emergency.