The post COVID-19 period will change the supply chain strategy tremendous. The actual situation is that almost every respectable company produce their materials in China due to cost efficiency reasons.

In time of a catastrophe in this part of the world the rest of the world is looking at China and the extreme dependency of Chinese industry. In my opinion this need and will change considerably.

Cost must no longer be the main driver of outsourcing strategy. Contingency need to be one of the elements that have to come in place.

Dual sourcing will the supply chain phrase in the post COVID-19 situation. Production will shift from China to other continents in the world, not completely but a substantial part to cover the contingency.

Consequences are higher production and operational costs, which will result in a higher price per product for the end customer.

The supply chain will get more important because of more geographical spread of manufacturers. This spread will increase transportation movements between production facilities and consumers around the globe. Modes of transport, lead-times and contingency set up will get more and more important. Logistics in general will become more important over the years to come, which will provide opportunities for the supply chain including transportation.

Although the crisis is still a hard struggle, I could see a glimmer of light at the end of the tunnel for the logistics industry.

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