The COVID-19 pandemic has knocked global supply chains off their axes. But CEOs and other leaders can build resilience into their operations and reset supply chains for the next inevitable disruption

Product shortages and supply-chain disruptions continue to drive headlines. On this episode of The McKinsey Podcast, Knut Alicke and Dan Swan, partners in McKinsey’s Operations Practice, describe the key cost, labor, and transportation issues facing CEOs and supply-chain managers. In their conversation with McKinsey executive editor Roberta Fusaro, they also suggest ways executives can build resilience into their supply-chain strategies—for when the next major shake-up eventually comes. An edited transcript of the conversation follows.

After that segment, hear from early-tenure consultant Oscar Viyuela Garcia, who left academia for a career at McKinsey.