The Next Normal: Emerging stronger from the coronavirus pandemic
Response tool

Rethinking the consumer goods supply chain in response to COVID-19

A resource for consumer goods leaders to help address the four archetypes of demand change seen during the COVID-19 crisis

For the consumer goods industry, COVID-19 has created significant volatility in the supply chain as a result of large changes in demand and supply. Many product categories continue to experience significant demand volatility and uncertainty, even months after initial crisis onset.

We have identified four archetypes of product demand change that senior leaders of consumer goods companies can use to segment their product portfolio. Leaders may want to consider a number of concrete actions to address the different demand and volatility profiles. Among other measures, leaders may choose to create transparency across their supply chains, empower cross-functional decision making, adopt scenario-based decision making, and break down siloed information within their organizations.

This document focuses on resilience, return, and reimagination – three of the five stages on the journey to a post-COVID-19 next normal. It is meant to help senior consumer goods leaders understand the impact of COVID-19 on their supply chain and consider steps to protect their employees, customers, supply chains and financial results through a supply chain control tower.

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Build resilience into the supply chain
Build resilience into the supply chain

This section focuses on:

  • A sample Control Tower framework to bring visibility to the entire product portfolio
  • Considerations when creating a Control Tower, including decision making, urgency, and metrics

Return prepared to meet new demands
Return prepared to meet new demands

This section focuses on:

  • Four archetypes to classify product demand
  • Potential actions to consider for each archetype
  • Building agility into the supply chain via the Control Tower
  • Safety considerations

Reimagine consumer goods supply chains
Reimagine consumer goods supply chains

This section focuses on:

  • Four themes to reimagine the consumer goods supply chain
  • Digital transformation focus areas and considerations
  • Sample framework to guide thinking regarding a digital transformation

Last updated October 21, 2020

This content is provided “as is” solely for informational purposes. It is not legal, health, or safety advice. Organizations should engage their own experts to ensure any adopted measures are compliant with applicable laws and standards in their jurisdictions. The content is current as of the date indicated, and may not incorporate the most recently available data. The opinions expressed by individuals are their own and do not reflect the views or opinions of McKinsey.