No industry, geography, or channel has been spared from supply chain disruption as the COVID-19 pandemic has spread. The range of supply chain impacts is long and varied:

• Demand drop-off (food service, fashion apparel)
• Demand spike (health/hygiene/personal care goods)
• New/shifted demand across channels (on-premise vs. grocery retail)
• Lower operational productivity (health and hygiene requirements, government-mandated shutdowns)
• Stranded inventory, drastic over/under stocks
• Raw material/input stoppages or shortages

Cost of goods sold (COGS) contributes 40 to 70 percent of a business's cost base.

COVID-19 has disrupted end-to-end value chain, with challenges every step of the way: Sourcing raw material production and logistics; manufacturing during plant shutdowns and social distancing; and delivering amid reduced warehouse operations, and transportation restrictions.

Cost profile by industry

Ensuring resiliency now for success in the future means companies need to prepare supply chains and production networks to balance reliability with responsiveness. Businesses must not only act now but also plan for future disruptions to protect COGS and margins in the Never Normal world.

Applying a zero-based lens across the supply chain provides the visibility needed to make deployment and cost containment decisions, identify opportunities for immediate relief and risk balancing, and execute with resilience: All supported by a deep analytics backbone.

A Zero-based Supply Chain (ZBSC) provides the building blocks to accelerate this journey rapidly. By radically shifting cost curves and boosting performance across the supply chain, businesses can create new value to fuel sustained growth in the Never Normal world.