Ten steps retailers can take to shock-proof their supply chains

McKinsey November 11, 2021
Manik Aryapadi, Tom Bartman, Martha Jachimski, Sarah Touse, and Kumar Venkataraman

In a seemingly ‘no win’ environment, retailers can take a two-speed approach to address the current shocks and build a more resilient foundation for the future.

The ongoing COVID-19 pandemic has created the perfect storm to disrupt retail supply chains across verticals. Wild fluctuations in demand have destabilized each leg of the supply chain. Over the past 18 months, the share of household spending on goods increased for the first time in 60 years. Inventory levels fell precipitously as retailers delayed purchases during the early months of the crisis. Collectively, retailers will need to spend $39 billion to return to prepandemic inventory levels.¹

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