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Diego Horcajada

How do you assess the robustness of your Supply Chain?



The coronavirus crisis dramatically reminds us just how fragile and vulnerable today’s Supply Chains are; see for example the recent announcements by Fiat Chrysler, Hyundai and Kia, stated in The Economics Espresso from Feb. 7, 2020. It examplifies how crucial the issue of robustness is in Supply Chain design. Unfortunately, enterprises focus frequently and primarily on short-term cost minimisation when designing their Supply Chains, neglecting long-term robustness. It is a shame not to leverage today’s powerful digital simulation tools for testing relevant "what-if scenarios" and support the development of meaningful contingency plans.

 

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