Coronavirus has highlighted complex issues with the current large and clumsy supply chains. The virus outbreak leads to the demand and use of digital transformation such as AI and blockchain, along with the shorter time-to-market requirements. Also, there is a wide increase in demand for understanding market conditions, new market trends, and rising concern for shortening the supply chains to make them more responsive to counter the pandemic effect.

One way to reevaluate the procurement and supply chain is by collaborating with local suppliers that can be used in case of emergency and as a substitute, particularly in a condition of existing long-standing supplier relationships in the supply chain. The leaders can also aim to reduce the product travel time between design, production, assembly, and shipping, which will shorten the manufacturing and distribution time. It would also allow for better collaboration between manufacturing engineers and suppliers, mainly when holdups occur.

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Certainly, reevaluating and redesigning the supply chain altogether is a complex approach, but having a backup for supply, production, and distribution capacity mainly reduces the entire supply chain disruption risk.

The second way is that there should be a vast distance between two primary supply sources; this will decrease the component availability risk and increase costs. Similarly, having manufacturing facilities with local supply sources spreads the COVID-19 risk and could cut transportation costs.

Both ways should be executed based on digital transformation technologies such as AI and blockchain to real-time monitor the movement of supplies. It also highlights improvements in the fundamental analysis by collecting volumes of data from different sources.