RESPONSES FOR FUTURE SUPPLY CHAIN DISRUPTIONS

Abstract

The crisis caused by COVID-19 pandemic lead to shocks in the global supply chains in 2020 and 2021. During the past two years - the trade wars, the effects on supply and demand and the ensuing logistical chaos that result from the rapid return to trade - have exposed vulnerabilities in firms' production strategies and supply chains. The paper is based on data from empirical research, expanding on the vulnerabilities of supply chain operations during global disruptions, focusing on both internal and external aspects of the companies. The research led to the discovery of future challenges which modern supply chains have to adapt to, through the possible digitalization of the supply chains with its analyzed benefits and drawbacks. Digitalization can synchronize various elements by eliminating manual processes and spreadsheets and replacing them with digital systems in companies that unite stakeholders around the world, improving communication, collaboration and ensuring the free flow of information in real time and by including each member in the supply chains. Based on data from the research, the paper presents detailed responses on various disruptions in supply chains. Organizations that are advanced in supply chain planning show key behaviors that drive their superior performance, enabling them to position themselves successfully and to adapt to most kinds of disruptions and momentary uncertainty.