Going back to pre-covid times seems impossible. With the rise of multiple Coronavirus variants rising, the only option at hand is to find ways for supply chains to work around the recent disruptions.
A supply chain has a series of interconnected parts with vendors, suppliers and partners.
Example: Hierarchy of a supply chain
In the above image, on one end of the pyramid sits large companies or Original Equipment Manufacturers (OEMs) followed by raw material suppliers, distributors/dealerships and logistics providers before the OEM markets the final product to its customers.
Looking at the image, we can say that Tier 3 suppliers who provide raw materials are the foundation of this supply chain. Tier 2 suppliers build products using raw materials supplied from Tier 3 and deliver it to Tier 1 suppliers who then further build products to provide it to top companies.
Not all supply chains look similar, they may be more complex or much simpler. However, in this entire interdependent chain, there are multiple processes from procurement planning to quality adherence checks that have to be met.
Whether it is the pandemic or a ship stuck in the Suez Canal, disruptions may vary and affect any stakeholder in the supply chain. And, disruption can be measured by understanding the probability and severity of its occurrence.