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Supply Chains Post COVID

Covid-19 has had a profound influence on practically every organizational sector. While it has undoubtedly pushed certain developments in businesses, which is definitely a remarkable step, particularly for those who had been pursuing the same tedious strategies, it has nearly impacted every domain negatively. One of the domains that have been severely hit as a result of it is the supply chains. In this YouTube video on the ‘Chicago Booth Review’ channel, Chicago Booth’s Nicole DeHoratius explores the many challenges that have occurred in the many supply chains and how vendors have responded to them.

One of the most important observations regarding supply chains after Covid was that as long as the employees in each industry were healthy, the supply systems were reasonably stable. They are somewhat capable of running their factories, and they have been extremely efficient in doing so. The place where there were several hundred alternatives has now been reduced to one or two. As a result, we may have fewer alternatives to pick from. Previously, we had a plethora of possibilities to pick from; however, now that variations have been minimized, the options to choose from have decreased dramatically. This allows the industrial units to produce more and expand their capacity. The variations have been minimized in an effort to maximize supply chain capacity and decrease set-up expenses associated with switching between goods. If you manage a manufacturing facility with a lot of diversity, you must set up for each of those numerous varieties. This causes you to spend the majority of your time setting up for each version, which might have been utilized to produce a good. As a result of the strain on supply networks, decreased product diversity and increased run time have emerged as negative repercussions. Essentially, supply chains are doing admirably. The need for transportation, as well as the demand for warehousing, has increased. They have this logistical performance indicator, according to Nicole, which has been dropping for the previous five years but has just increased due to the demand for all of these things. As a result, supply chains are expanding and will continue to do so.

With the pandemic closing down markets, it is critical that the vital items reach customers in some way, which is why supply chains are more than important and cannot be eliminated. However, as Chicago Booth’s Nicole DeHoratius demonstrates in this YouTube video on the ‘Chicago Booth Review’ channel, supply chains have not been significantly impacted thus far.

For insights and real-world teachings about the current market and business environment, post-covid, looking to the future with a renewed attention to what is required, visit, Chicago Booth Accelerated Development Program (Chicago Booth ADP) offered by the University of Chicago Booth School of Business.

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