Supply Chains: From ‘just in time’ to ‘just in case’

 
The pandemic and Russia’s invasion of Ukraine have sent shockwaves through global supply chains, leading companies and policymakers to rethink their priorities, from efficiency to resilience.

Until recently, “just in time” was the name of the game in supply chain management. Stocking up on resources, intermediary and finished products was considered costly and inefficient.

Instead, companies tried to buy only what they knew they would produce and to produce only what they knew they would sell.

Well-integrated supply chains, abundant and cheap shipping, as well as data on customer behaviour allowed this to work out for companies – at least for a while.

Then, the pandemic and the war led to highly volatile resource prices, soaring shipping costs, disrupted supply chains, and large swings in customer behaviour. Suddenly, having some resources and products in stock no longer seems such a bad idea. (...)