Supply Chain Disruptions : A case study on the effects the Covid-19 pandemic and the Ukraine conflict has had on sustainability work within supply chains in the automotive industry

Abstract: The invasion of Ukraine during early 2022 resulted in significant disruptions for supply chains globally. With massive delays and resource shortages, many companies have found a need to rethink their approach to resilience to not be as affected by future disruptions of similar proportions. These companies did not have much time to prepare for the Ukraine conflict as the effects of the disruptions caused by the Covid19 pandemic could still be felt. In the midst of these disruptions there is also a large ongoing shift toward more sustainable practices that aim to reduce waste and streamline operations. Balancing between these sustainable practices and efficient resilience measures is a difficult task as there are many ways the two can clash. Through a case study on the Swedish automotive industry the disruptions caused by the Covid pandemic and Ukraine conflict were looked into as well as what resilience measures were being implemented in response. The effects that both the disruptions and resilience measures had on the sustainable practices of the companies were explored in addition. The study collected data through semi-structured interviews to gather first-hand insights into the relevant supply chains. Based on the conducted research, the study presents three primary findings. Firstly, there is a rising trend in the Swedish automotive industry to rethink current resilience strategies and become more proactive. This is new as the previous approach has been primarily reliant on reactive resilience measures. The first step in this transition focuses on supply chain mapping and visualization to become more knowledgeable about one's supply chain. With the newfound information, the companies are planning to put in efforts where they are most effective with measures like dual sourcing and buffer stocks are critical points in the chain. Secondly, the study presents a transition towards local supply chains as a means to connect resilience and sustainability for enhanced benefits to both areas. With shorter transport routes, there is less risk for disruptions and lower emissions. Moving sourcing to Europe also enables better transparency and promises better working conditions as a result of local labor laws. Local sourcing further provides stability by minimizing the effects disrupting events in other parts of the world have on the supply chain. Thirdly, the concept of product redesign is presented as an alternative resilience measure. When supply of materials becomes scarce and bottlenecks arise, adapting products to what is available can offer flexible companies with a new reactive measure of resilience. This measure offers a unique way of optimizing resource usage while minimizing the impact of a disruption. As companies become more aware of potential future disruptions, the redesign of products based on perceived future availability of materials can also serve as a proactive resilience measure.