Restructuring Global Supply Chains: Navigating Challenges of the COVID-19 Pandemic and Beyond
Georgetown McDonough School of Business Research Paper No. 4564927
Kenan Institute of Private Enterprise Research Paper No. 4564927
The Wharton School Research Paper
Forthcoming in Manufacturing & Service Operations Management
47 Pages Posted: 13 Sep 2023 Last revised: 3 Apr 2025
Date Written: September 7, 2023
Abstract
Problem definition: The COVID-19 pandemic imposed unprecedented stresses on global supply chains (GSCs), compelling companies to reassess their supply chain structures and strategies. This crisis has also heightened awareness among businesses, consumers, and policymakers about the critical importance and far-reaching implications of GSC design and management. This unique moment presents a generational opportunity for Operations Management (OM) researchers to document and understand the ongoing restructuring of GSCs. Methodology/Results: By analyzing micro-level data on U.S. customs import shipments (2019-2021), we uncover shifts in GSC strategies during the COVID-19 pandemic. Firms diversified suppliers within existing sourcing locations and reallocated volumes among them. While dependence on China decreased, imports from other Asian nations like India and Vietnam, as well as North American countries like Canada and Mexico, increased. Industry-specific differences were pronounced, and a notable shift toward lower-frequency, higher-quantity shipments was also observed. Managerial implications: Beyond the challenges of COVID-19, recent years have witnessed other major supply chain disruptions, due to causes such as geopolitical tensions, natural disasters, and port worker strikes. We offer actionable insights for executives designing supply chain strategies to prepare for similar disruptions as they increase in frequency and severity. We identify future research avenues aimed at enhancing the resilience and adaptability of GSCs in a continuously evolving environment.
Keywords: Global Operations Management, Supply Chain Management, Empirical Research, Logistics and Transportation
Suggested Citation: Suggested Citation
Niu, Yimeng and Werle, Niklas and Cohen, Morris A. and Cui, Shiliang and Deshpande, Vinayak and Ernst, Ricardo and Huchzermeier, Arnd and Tsay, Andy and Wu, Jing, Restructuring Global Supply Chains: Navigating Challenges of the COVID-19 Pandemic and Beyond (September 7, 2023). Georgetown McDonough School of Business Research Paper No. 4564927, Kenan Institute of Private Enterprise Research Paper No. 4564927, The Wharton School Research Paper,
Forthcoming in Manufacturing & Service Operations Management
, Available at SSRN: https://ssrn.com/abstract=4564927 or http://dx.doi.org/10.2139/ssrn.4564927Do you have a job opening that you would like to promote on SSRN?
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