In an article for MIT Sloan Management Review, CTL Director Yossi Sheffi writes that rising inflation and global supply chain problems raise concerns that a recession is looming.
"Nearly two years into the disruption caused by the COVID-19 pandemic, signs are pointing to the growing risk of a global economic recession. High consumer demand, product shortages, and transportation disruptions in the second half of 2021 triggered inflation and changes to manufacturers’ order patterns, setting up the bullwhip effect — a supply chain phenomenon that can have far-reaching consequences. The ups and downs of money flows, labor patterns, inventory management, and product demand are setting the stage for what happens next — and business leaders, particularly in supply chain roles, should prepare now for the greater challenges that may lie ahead."