Dr. Eleftherios “Lefteris” Iakovou is utilizing his years of expertise in supply chain research to bolster current, and develop new, resilient supply chain systems. He recently published an extensive look into supply chains and how to build a more robust system in the United States.
When one part of this delicately balanced network fails and disrupts the process, the rest of the supply chain — consumers, companies and the nation included — are directly affected.
Developing a resilient supply chain starts with understanding that one size does not fit all. Each has its own set of complications and strengths.
“Companies are pushing for low cost. Low cost itself is not sustainable. The federal government, on the other side, needs resilience and security for supply chains critical to the nation.”
In the modern global economy, cost reduction has become nearly synonymous with outsourcing and offshoring the manufacturing of components for products. However, it is important for companies to still have home-based manufacturing plants that operate, even at a lower production rate, in case there is an issue with the offshored supply.
Iakovou said COVID-19 demonstrated the sole supplier model is out of business.
“Companies are pushing for low cost,” he said. “Low cost itself is not sustainable. The federal government, on the other side, needs resilience and security for supply chains critical to the nation.”
By transitioning companies away from a shareholder model and into a stakeholder model, private and government sectors would have to collaborate and consider not only shareholder value, but also workers and associated partners, society, national competitiveness and security, and the environment.
“That’s a monumental shift that, if it happens correctly, would allow for new optimal trade-offs between cost efficiencies, resilience and sustainability,” he said.
Dr. Eleftherios Iakovou