"This has been a really strong evolution going from the 80s, the 90s, the 2000s, to take fat out of the supply chain, to tighten down everything," says supply-chain management expert Rich Weissman. He says in the past 10 years companies have come to really rely on analytics to fine-tune supply chains to make sure that supply and demand absolutely line up. And that's where I think we've gone too far.”

The heavy dependence on China across industry verticals is an obvious example of the sole-sourced nature of today’s supply chains.

"It suggests that climate-related risks and pandemics such as Covid-19 have similarities. Both are massive global negative externalities and both are related to changes in our natural ecosystems. In addition to the extensive economic and financial damage they both produce, both directly affect human lives and thus could be classified as Green Swans. And, for both, there is a discrepancy between how scientists warn us about the quasi-certainty of their occurrence and how we fail to systematically consider their potentially huge costs and integrate them into risk frameworks and final prices."

Thirty-four percent of procurement leaders believe coronavirus disruption has already peaked, while 49% believe a peak will come between June and December, according to a recent survey of 605 procurement and supply chain leaders conducted by Procurious.

The COVID-19 pandemic presents a serious threat to people, businesses and economies across the world. Gartner’s recent Business Continuity Survey shows just 12 percent of organizations are highly prepared for the impact of coronavirus. Smart leaders must focus on how they can best protect their people, serve their customers and stabilize business continuity.

As the world begins to ease movement restrictions imposed during the COVID-19 pandemic, companies are wondering where they go from here and how they can reduce risks moving forward.

The COVID-19 crises forced governments to build new international supply chains nearly overnight. New innovations, such as blockchain, can make the supply chain more efficient, less risky and increase the velocity of goods running through the system. Supply chain solutions must be put in place now to help manage demand from second and third waves of infection.

Speech by Luiz A Pereira da Silva based on remarks at the OECD Chief Economist Talk Series, Paris, 23 April 2020 and a Research Webinar at the BIS, 13 May 2020.

"It suggests that climate-related risks and pandemics such as Covid-19 have similarities. Both are massive global negative externalities and both are related to changes in our natural ecosystems.