DC Velocity - June 2020

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component of that [digital] transformation. Companies
can no longer afford to think about risk management as a
separate process; it must be embedded within their strategic
and tactical decision-making.

QWhat advice would you give national governments on how theycan help supply chains in the post-cri-sis period?

APrivate industry will always have more resources than the government, but these resources can eitherbe hamstrung or multiplied dependingupon how the government partnerswith industry. These types of partnerships can only be achieved with theright interface. A good example of thisis the American Logistics Aid Network,which launched the Supply Chain Intelligence Center tohelp businesses quickly see government-imposed restrictions or waivers that impact supply chains.

QWhat industry sectors do you expect to be most changedbythepandemicandwhy?

ARetail’s move to e-commerce will be accelerated, and obviously the hospitality industry will change in many
ways, as trends toward eating in restaurants will reverse
and [the demand for] food delivery will grow. Pharma
companies will come under pressure to source from lower-
risk countries and onshore more production. Companies
with very lean supply chains will be
under pressure to increase safety
stock. Consumers will not demand the
[same variety of choices they previous-
ly did], which will allow companies
to reduce SKU [stock-keeping unit]
proliferation and the resulting supply
chain complexity.

QWhat effects do you expect to see in freight transportation for thenext year? How will the pandemicaffect freight rates and capacity?AThe biggest challenge for freight ransportation will be volatility.

Supply and demand will come back online at differenttimes in different parts of the world, and the likelihood ofsecondary outbreaks will create further supply disruptionsand demand shocks. [Regions] where demand does returnwill see capacity challenges due to imbalances in transportation assets as well as the insolvency of many carriers overthe next six to 12 months. ;