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Media item displaying Post-COVID-19 Supply Chains Must Be Nimble
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Post-COVID-19 Supply Chains Must Be Nimble

The Daily Gazette

8.19.2020

As COVID-19 spread from China to Europe to the U.S. and elsewhere, supply chains that for decades had operated successfully on “lean logistics” – which prized low-cost efficiency – suddenly seized up as parts made in Europe, for instance, couldn’t get to China for final assembly before being shipped to the United States for retail sale.

Why? “Well … to be honest, we were not prepared to change quickly enough to deal with COVID,” said Ronald Leibman, a partner leading the transportation, logistics and supply chain management practice at law firm McCarter & English in New Jersey.

Lean logistics created supply chains that may have been cost-conscious and hyper-efficient, but they were not nimble, he said.  

“No one listened to the warnings from the academics and pundits [after earlier global health scares and natural disasters] saying ‘you’re not ready guys,’” he added.

“COVID was the big wake-up call.”

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Media item: Ronald M. Leibman
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