Rearchitecting …

In the post-pandemic world, successful supply chains will find a balance among three imperatives: agility, efficiency, and resilience. While cost remains a concern, the past two years have exposed the vulnerabilities in over-indexing on efficiency. But building resilience to withstand whatever shocks come next requires an investment that may be at odds with an efficiency-first mindset. Adding agility will require a tripolar strategy. To manage external challenges, supply chain leaders need to be well-equipped and strike the right balance between agility, efficiency, and resilience (figure 3). Overall, supply chains will need to balance costs and carbon footprint while managing resiliency—a tough act that will require companies to consider strategies markedly different from the past three decades.

Source: Jim Kilpatrick, Paul Delesalle, and Adam Mussomeli, “The new supply chain equilibrium,” Deloitte Insights, April 1, 2022.