State of Supply Chain Sustainability 2022 slide image

State of Supply Chain Sustainability 2022

Changes Over Time Covid-19 and Supply Chain Sustainability: Replication and Explanation For the past two years, we have asked the question "Since the start of Covid-19, my firm's commitment to supply chain sustainability has..." And for the last two years, we have received almost identical results from the English- language respondents. In 2021, 30% answered that their firms' commitment had increased, and 47% said it stayed about the same. This means that for the second consecutive year, roughly 80% of respondents reported that their firms were undaunted by the global pandemic.³ This replication of results adds support to our previous conclusion that approximately 80% of firms held fast to their supplychain sustainability goals during the Covid-19 pandemic. To many, these results were counterintuitive. How could a global pandemic not derail supply chain sustainability (SCS) efforts?4 But this year, our qualitative research offered another interpretation. In our semi-structured executive interviews, we heard several respondents describe how the pandemic actually brought supply chain management—and in particular, supply chain transparency and resilience- to the fore in a way that it never had before. Previously, global supply chains simply ran silently and unseen in the background of business operations and day-to-day life. In 2020, we began to see emerging evidence of firms shoring up-and even accelerating-their SCS efforts as a risk management measure and a way to strengthen their supply chain resilience.5 And in 2021, we see this idea spreading and taking hold more broadly. In 2021, since the start of Covid-19, my firm's commitment to supply chain sustainability has... Not sure 14% Decreased 8% Stayed about the same. 47% Increased 30% Figure 2: Change in supply chain sustainability (SCS) commitment in 2021 (n = 1,694) In the face of constant disruptions, leading companies worldwide are urgently redesigning their supply networks and ecosystems to not only address business continuity and resilience, but also to improve their supply chain for sustainability, which is a very high priority for internal and external stakeholders alike. -Hong Mo Yang Senior Vice President for Industry Strategy, Blue Yonder State of Supply Chain Sustainability 2022 | Changes Over Time | sscs.mit.edu | 6
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