“The New (Ab)Normal” by Yossi Sheffi delves into the unprecedented disruptions that COVID-19 has wreaked upon global supply chains and business strategies. Sheffi, an expert in supply chain management, provides an insightful analysis of the challenges faced by businesses during the pandemic and offers detailed strategies to navigate and thrive in the post-pandemic world. This summary will cover the key points, examples, and actionable advice from the book.

Sheffi begins by illustrating the massive disruption caused by COVID-19, emphasizing its unparalleled impact on global supply chains. The pandemic led to widespread lockdowns, halting manufacturing and leading to a sharp decline in global trade.

Key Point: Supply Chain Shocks
– Example: The shortage of personal protective equipment (PPE) at the beginning of the pandemic is a direct result of a disrupted supply chain where demand outstripped supply.
– Action: Diversify Suppliers: Companies should diversify their suppliers across multiple geographies to mitigate risks associated with local disruptions.

Sheffi discusses the importance of building resilience into supply chains to withstand future disruptions. He distinguishes between resilience and efficiency and argues that while efficiency focuses on cost-cutting and lean management, resilience is about preparedness and adaptability.

Key Point: Building Redundancies
– Example: Toyota’s development of a sophisticated risk management system after the 2011 earthquake in Japan that involves maintaining buffer stocks and multi-sourcing critical components.
– Action: Invest in Buffer Stock: Maintain a strategic inventory of critical supplies to cushion against supply chain disruptions.

Technology plays a critical role in adapting to the new abnormal. Advanced analytics, artificial intelligence (AI), and blockchain can provide greater visibility and predictive capabilities in supply chains.

Key Point: Digital Transformation
– Example: Walmart’s use of blockchain to track the origins of leafy greens, which improved traceability and reduced the time it takes to pinpoint contamination sources.
– Action: Implement Advanced Analytics: Use data analytics and AI to gain real-time insights into supply chain operations and predict potential disruptions before they occur.

Sheffi emphasizes the significance of collaboration within and across industries. Collaboration can take the form of shared logistics, data sharing, and joint ventures.

Key Point: Cross-industry Collaboration
– Example: Pfizer and BioNTech’s partnership accelerated the development of the COVID-19 vaccine.
– Action: Form Strategic Partnerships: Engage in partnerships and collaborations to leverage shared resources, expertise, and distribution networks.

Agility is the ability to quickly adapt and respond to changing conditions. Sheffi argues that agile supply chains are essential for managing the uncertainties brought by the pandemic.

Key Point: Flexibility in Operations
– Example: Zara’s ability to swiftly alter production lines to meet changing fashion trends illustrates the power of an agile supply chain.
– Action: Enhance Supply Chain Flexibility: Develop flexible manufacturing capabilities that can be retooled rapidly to produce different products as per market demand.

Effective risk management involves identifying, assessing, and mitigating risks that can disrupt supply chains. Sheffi underscores that proactive risk management is more critical than ever.

Key Point: Comprehensive Risk Assessment
– Example: The automotive industry’s shift to Just-In-Time (JIT) inventory management, which heightened the need for meticulous risk assessment and contingency planning.
– Action: Conduct Regular Risk Audits: Periodically review and update risk management strategies to account for evolving threats and vulnerabilities.

The pandemic has significantly altered consumer behavior, with a surge in e-commerce and changes in purchasing priorities.

Key Point: Adapting to E-commerce Growth
– Example: Companies like Amazon and Alibaba who experienced unprecedented growth in online sales due to increased demand for home deliveries.
– Action: Invest in E-commerce Infrastructure: Strengthen online sales channels and delivery capabilities to cater to the growing preference for online shopping.

Sheffi discusses the future of globalization in the wake of COVID-19. He points out that while there may be a shift towards localization, global interconnectedness will remain crucial.

Key Point: Balancing Global and Local
– Example: The pharmaceutical industry’s reliance on global supply chains for raw materials, which compels a balance between globalization and local sourcing.
– Action: Adopt a Hybrid Approach: Maintain a global footprint while also investing in local capabilities to balance efficiency and risk.

Effective leadership is critical in navigating the complexities of a crisis. Sheffi highlights the qualities of successful leaders during the pandemic, such as transparency, empathy, and decisiveness.

Key Point: Transparent Communication
– Example: New Zealand Prime Minister Jacinda Ardern’s clear and empathetic communication helped in effectively managing the country’s COVID-19 response.
– Action: Develop Transparent Communication: Ensure open and clear communication with stakeholders to build trust and provide guidance during crises.

The book argues that sustainability should not take a backseat even during crises. Sustainable practices can enhance resilience and create long-term value.

Key Point: Integrating Sustainability
– Example: Patagonia’s commitment to environmentally-friendly practices, which bolsters their brand reputation and customer loyalty.
– Action: Commit to Sustainability: Embed sustainability into business operations, sourcing strategies, and supply chain management.

Managing the workforce during the pandemic posed significant challenges. Sheffi discusses strategies for protecting employee wellbeing while maintaining productivity.

Key Point: Ensuring Employee Safety
– Example: Implementing remote work policies and safety protocols in essential businesses to protect employees while keeping operations running.
– Action: Enhance Workforce Flexibility: Offer flexible working arrangements and robust safety measures to ensure employee well-being and business continuity.

“The New (Ab)Normal” by Yossi Sheffi provides a comprehensive guide for businesses to navigate the unprecedented disruption caused by COVID-19. The book covers a broad array of strategies aimed at enhancing supply chain resilience, leveraging technology, fostering collaboration, embracing agile and sustainable practices, and effective leadership. By implementing these strategies, businesses can not only survive but also thrive in the post-pandemic world.

By adopting these strategies, businesses can transform their supply chain operations to be more resilient, agile, and prepared for future disruptions.