University at Buffalo School of Management

Buffalo Business - Spring 2022

The magazine for alumni and friends of the UB School of Management

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18 Buffalo Business Spring 2022 By Kevin Manne BREAKING THE CHAINS Early in the COVID-19 pandemic, shoppers were regularly greeted with barren shelves as stores struggled to keep up with an unexpected surge of demand for products like toilet paper, cleaning supplies and food staples. Eventually these products returned to local stores as demand waned and supply caught up. But other areas of the supply chain continued to struggle. In the automotive industry, a global shortage of micro- chips created gridlock on the assembly line as manufacturers waited for chips to finish building cars. Consumer electronics like computers, video game consoles and smartphones were also hard hit. Natalie Simpson, associate professor and chair of opera- tions management and strategy, says these issues are the result of an efficiency-focused supply chain developed over the past two decades. During that time, compa- nies continued to source lower c o s t g o o d s f ro m g re a t e r distances—a higher profit, but somewhat riskier, way to provide us with merchandise. Simpson

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