Archive | February 2021

Global Supply-Chain Effects of COVID-19 Control Measures

Among the numerous SCM articles that appeared in 2020, one was particularly popular: Global Supply-Chain Effects of COVID-19 Control Measures by Guan et al. (2020). The authors “analyse the supply-chain effects of a set of idealized lockdown scenarios, using the latest global trade modelling framework”. This model is an extension of the so-called ARIO model, which is often used in the literature to simulate how negative shocks propagate throughout the economy. The findings can be summarized as follows: “Short, sharp shock: stricter COVID-19 lockdowns imposed earlier have a smaller economic impact than moderate lockdowns that last longer, according to an analysis of global supply chains. The researchers suggest a cautious approach to easing restrictions could also prevent subsequent lockdowns.” The article is part of the 2020 Altmetric Top 100, which lists the most discussed articles across 20 disciplines. It was published in the journal Nature Human Behavior.

Guan, D., Wang, D., Hallegatte, S. et al. (2020). Global Supply-Chain Effects of COVID-19 Control Measures. Nature Human Behavior, 4, 577–587.

Net-Zero Challenge: The Supply Chain Opportunity

A new World Economic Forum report, entitled Net-Zero Challenge: The Supply Chain Opportunity and co-authored with Boston Consulting Group, showcases “the opportunity that all companies have for huge climate impact through action to decarbonize global supply chains”. This report argues that addressing supply-chain emissions enables many companies to impact “a volume of emissions several times higher than they could if they were to focus on decarbonizing their own direct operations and power consumption alone”. Among the major findings of the report: (1) Many companies can multiply their climate impact by decarbonizing supply chains; (2) Eight supply chains account for more than 50% of global emissions; (3) Net-zero supply chains would hardly increase end-consumer costs; (4) But: decarbonizing supply chains is hard. The report contains a step-by-step guide, which shows nine major initiatives every company can undertake. These initiatives were identified through interviews with a large number of global companies that, according to the authors, lead the way in reducing supply-chain emissions.