RESILIENCE FOR ALL
Redesigning Supply Chains for a Pandemic-Altered World
With 20/20 hindsight, the
vulnerabilities of supply chains
to a global pandemic were clear
to see – situated far from reach,
concentrated in certain locations,
and with limited visibility into
operations even for major buyers.
From fashion and retail to transportation, tourism,
electronics, hospitality, and entertainment – buyers
and suppliers were unprepared for the catastrophic
disruption of shuttered businesses, locked down
economies, and global trade on pause due to
COVID-19.
These economic impacts also involved significant
human cost. The estimated 450 million people
working in supply chains are often in extremely
precarious situations. They typically experience
poverty-level wages, unsanitary and unsafe working
conditions, little to no social protections, and often
hold other characteristics – such as being women,
primary caregivers, or migrant workers – that make
them even more vulnerable.
As buyers were cancelling and postponing orders
in 2020, or demanding price reductions and
rebates from suppliers, it was workers who were
often bearing the brunt. Countless reports arose
of jobs lost en masse, non-existent state-supported
severance and furlough schemes, stranded migrant
workers, unpaid overdue wages, and COVID-19
being used as a guise to hamper union activity.
Prior to the pandemic, many businesses were already
beginning to reconfigure their approach to sourcing
– diversifying suppliers, onshoring or reshoring
manufacturing and production, and digitising
to make supply chains more visible – in part as a
response to growing trade conflicts, in particular
between the US and China. So 2021 will most
& Human Rights
2021 Business
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certainly see supply chain transformation, but
now rapidly accelerated by the events of 2020.
“Resilience” will be the name of the supply
chain game, focused on managing market
change through simplified and more responsive
distribution networks, cash flow cultures, endto-end visibility, and what-if forecasting. But
“resilience” must ultimately mean more than
protected bottom lines. Workers’ safety, security,
and stability must be at the heart of these
transformed, more resilient supply chains.
The lesson of 2020 is that if supply chains are
at risk then supply chain workers are at risk. The
opportunity of 2021 is to place worker dignity at
the centre of supply chain transformation plans.
This includes a social contract that reflects the
modern world of work, complete with a labour
protection floor for all workers safeguarding
their fundamental rights, adequate minimum
wage, maximum working hours, and health and
safety guarantees. It is no small order, but the
opportunity for truly transformational change has
come with this once-in-a-generation pandemic.
“
The lesson of 2020 is that if
supply chains are at risk then
supply chain workers are at
risk. The opportunity of 2021
is to place worker dignity at
the centre of supply chain
transformation plans.
”
Institute for Human Rights and Business
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