
Episode 132
The Impact of COVID-19 on Global Supply Chains with ISM CEO | Tom Derry

Episode 132
Tom Derry
The Impact of COVID-19 on Global Supply Chains with ISM CEO | Tom Derry
summary
In Episode 132 of Hidden Forces, Demetri Kofinas speaks with Tom Derry, CEO of the Institute for Supply Management and publisher of the market-moving ISM Manufacturing Index about the impact of COVID-19 on global supply chains.
In recent years, global supply chains have been in the process of a fundamental shift, in part to strengthen their immune systems to mitigate the risk of multiple threats — unprecedented trade turbulence, as well as economic uncertainty, geopolitical events and rising labor costs. COVID-19 (novel coronavirus) has provided a severe new test to these global supply chains.
Since its genesis in the manufacturing hub of Wuhan, China, in December, the outbreak has resulted in more than one million documented cases and nearly sixty thousand deaths worldwide, quarantined workers, temporarily shuttered factories, canceled high-profile events, shaken markets and handcuffed supply management organizations at many companies. The gravity of the situation was exemplified in a survey by Institute for Supply Management, which found that nearly three-fourths (72%) of U.S. companies have experienced supply chain disruptions due to coronavirus-related transportation restrictions, and 81% of organizations expect their procurement operations to be impacted by COVID-19. For some of those companies, the infection goes beyond the supply chain, as 16% of survey respondents report lowering annual revenue targets by an average of 5.6%. More than half (53%) of the 628 respondents in ISM’s recent survey said their companies are having trouble getting supply chain information from China.
The full episode is a deep-dive into how the intricate world of just-in-time manufacturing, outsourcing, and globalization has been impacted by the world-wide disruptions we’ve seen in early 2020. In the overtime, Demetri and Tom discuss the impact of COVID-19 on the telecommunications industry and MSO’s, the automotive space, commercial air travel, as well as the market for shipping crude oil. Tom also explains how companies have been re-positioning themselves coming out of this contraction, including the long-term impacts of rerouting supply chains and rethinking the scale and efficiency of distribution and sourcing.
You can access the episode overtime, as well as the transcript and rundown to this week’s episode through the Hidden Forces Supercast Page. All subscribers gain access to our overtime feed, which can be easily added to your favorite podcast application.
Producer & Host: Demetri Kofinas
Editor & Engineer: Stylianos Nicolaou
Subscribe & Support the Podcast at http://patreon.com/hiddenforces
Join the conversation on Facebook, Instagram, and Twitter at @hiddenforcespod
bio
Thomas W. Derry is Chief Executive Officer of the Institute for Supply Management with more than 30 years of experience in leadership and general management roles for public and private companies, and in the not-for profit sector. As CEO of ISM, Tom has a unique vantage point to observe major macroeconomic trends and the development of global supply chains through his daily contact with Fortune 500 chief procurement officers and chief supply chain officers, with government agencies and NGOs in the United States and abroad, and with leading academics. Tom has been interviewed on CNBC, Bloomberg Television, quoted in the Wall Street Journal, the New York Times, and dozens of other business publications. Tom has represented ISM in meetings with the White House Council of Economic Advisers, the National Security Council, the Federal Reserve System Board of Governors, and the U.S. Small Business Administration. Derry is a 1986 graduate of Georgetown University’s Walsh School of Foreign Service (B.S., Foreign Service).
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Nummus in Croesi divitiis obscuratur, pars est tamen divitiarum. Suam denique cuique naturam esse ad vivendum ducem. Mihi, inquam, qui te id ipsum rogavi? Luxuriam non reprehendit, modo sit vacua infinita cupiditate et timore. At ille pellit, qui permulcet sensum voluptate. Quis suae urbis conservatorem Codrum, quis Erechthei filias non maxime laudat?
Quamvis enim depravatae non sint, pravae tamen esse possunt. Atque haec coniunctio confusioque virtutum tamen a philosophis ratione quadam distinguitur. Hanc ergo intuens debet institutum illud quasi signum absolvere. Nam quibus rebus efficiuntur voluptates, eae non sunt in potestate sapientis. Nihil ad rem! Ne sit sane;
Nunc haec primum fortasse audientis servire debemus. Quis, quaeso, illum negat et bonum virum et comem et humanum fuisse? Atque hoc loco similitudines eas, quibus illi uti solent, dissimillimas proferebas.
Full Episode
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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Et adhuc quidem ita nobis progresso ratio est, ut ea duceretur omnis a prima commendatione naturae. Tum ille: Ain tandem? Claudii libidini, qui tum erat summo ne imperio, dederetur. Itaque et manendi in vita et migrandi ratio omnis iis rebus, quas supra dixi, metienda. Duo Reges: constructio interrete. Audio equidem philosophi vocem, Epicure, sed quid tibi dicendum sit oblitus es. Itaque hic ipse iam pridem est reiectus; Diodorus, eius auditor, adiungit ad honestatem vacuitatem doloris.
Itaque et manendi in vita et migrandi ratio omnis iis rebus, quas supra dixi, metienda. Quem Tiberina descensio festo illo die tanto gaudio affecit, quanto L. Tertium autem omnibus aut maximis rebus iis, quae secundum naturam sint, fruentem vivere. Quae si potest singula consolando levare, universa quo modo sustinebit? Habes, inquam, Cato, formam eorum, de quibus loquor, philosophorum. Quamquam ab iis philosophiam et omnes ingenuas disciplinas habemus;
Inde igitur, inquit, ordiendum est. Tu quidem reddes; De vacuitate doloris eadem sententia erit. Deque his rebus satis multa in nostris de re publica libris sunt dicta a Laelio. Faceres tu quidem, Torquate, haec omnia; Verba tu fingas et ea dicas, quae non sentias?
Aliena dixit in physicis nec ea ipsa, quae tibi probarentur; Est enim effectrix multarum et magnarum voluptatum. An dolor longissimus quisque miserrimus, voluptatem non optabiliorem diuturnitas facit? An tu me de L. Portenta haec esse dicit, neque ea ratione ullo modo posse vivi; Et non ex maxima parte de tota iudicabis? Quae tamen a te agetur non melior, quam illae sunt, quas interdum optines. Eorum enim omnium multa praetermittentium, dum eligant aliquid, quod sequantur, quasi curta sententia;
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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Magno hic ingenio, sed res se tamen sic habet, ut nimis imperiosi philosophi sit vetare meminisse. At iam decimum annum in spelunca iacet. Sequitur disserendi ratio cognitioque naturae; Duo Reges: constructio interrete. Haec qui audierit, ut ridere non curet, discedet tamen nihilo firmior ad dolorem ferendum, quam venerat. Quarum ambarum rerum cum medicinam pollicetur, luxuriae licentiam pollicetur. Ratio enim nostra consentit, pugnat oratio.
Haec dicuntur inconstantissime. Res tota, Torquate, non doctorum hominum, velle post mortem epulis celebrari memoriam sui nominis. Si verbum sequimur, primum longius verbum praepositum quam bonum. Isto modo ne improbos quidem, si essent boni viri. Est autem etiam actio quaedam corporis, quae motus et status naturae congruentis tenet; Quia voluptatem hanc esse sentiunt omnes, quam sensus accipiens movetur et iucunditate quadam perfunditur.
At modo dixeras nihil in istis rebus esse, quod interesset. Quis Aristidem non mortuum diligit? Tum Quintus: Est plane, Piso, ut dicis, inquit. Qui non moveatur et offensione turpitudinis et comprobatione honestatis? Occultum facinus esse potuerit, gaudebit; Tum Quintus: Est plane, Piso, ut dicis, inquit.
Paulum, cum regem Persem captum adduceret, eodem flumine invectio? Quo plebiscito decreta a senatu est consuli quaestio Cn. Quae in controversiam veniunt, de iis, si placet, disseramus. Eam si varietatem diceres, intellegerem, ut etiam non dicente te intellego; Ex ea difficultate illae fallaciloquae, ut ait Accius, malitiae natae sunt. Varietates autem iniurasque fortunae facile veteres philosophorum praeceptis instituta vita superabat.
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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Traditur, inquit, ab Epicuro ratio neglegendi doloris. De quibus cupio scire quid sentias. Atque hoc loco similitudines eas, quibus illi uti solent, dissimillimas proferebas. At ille non pertimuit saneque fidenter: Istis quidem ipsis verbis, inquit; Quod non faceret, si in voluptate summum bonum poneret. Videmusne ut pueri ne verberibus quidem a contemplandis rebus perquirendisque deterreantur?
Tum mihi Piso: Quid ergo? Quasi ego id curem, quid ille aiat aut neget. In quo etsi est magnus, tamen nova pleraque et perpauca de moribus. Deinde disputat, quod cuiusque generis animantium statui deceat extremum. Cum autem in quo sapienter dicimus, id a primo rectissime dicitur. Nullus est igitur cuiusquam dies natalis. Expectoque quid ad id, quod quaerebam, respondeas.
Quo plebiscito decreta a senatu est consuli quaestio Cn. Est, ut dicis, inquit; Quaero igitur, quo modo hae tantae commendationes a natura profectae subito a sapientia relictae sint. Teneo, inquit, finem illi videri nihil dolere. Quamquam te quidem video minime esse deterritum. Sapientem locupletat ipsa natura, cuius divitias Epicurus parabiles esse docuit. Quamquam te quidem video minime esse deterritum. Prioris generis est docilitas, memoria;
Quid ergo attinet gloriose loqui, nisi constanter loquare? Nullus est igitur cuiusquam dies natalis. Duo Reges: constructio interrete. Nescio quo modo praetervolavit oratio. Negat enim summo bono afferre incrementum diem. Equidem etiam Epicurum, in physicis quidem, Democriteum puto. Nondum autem explanatum satis, erat, quid maxime natura vellet. Deinde disputat, quod cuiusque generis animantium statui deceat extremum. Sunt enim prima elementa naturae, quibus auctis vírtutis quasi germen efficitur. Quid ei reliquisti, nisi te, quoquo modo loqueretur, intellegere, quid diceret? Sed tamen est aliquid, quod nobis non liceat, liceat illis.