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Commentary on the supply chain

Safety stocks represent the 20% of supply chain risk management with which 80% of risks can be hedged. The supply chain drama could therefore be mitigated relatively easily.

The turmoil in global supply chain networks in recent months, caused by coronavirus, accidents in production facilities, shipping disasters and natural disasters, has once again highlighted the fact that globally networked supply chains also behave like an ecosystem. All parts are in balance with each other.

Demand is expected to collapse due to the pandemic, customers are canceling orders and manufacturers are adjusting production capacities downwards or selling their capacities to new markets. If the demand comes back, possibly If production capacities cannot be ramped up quickly enough, demand cannot be met.

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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