Facing the current situation where retail sales around the world are collapsing, is it better to focus on the short term and mitigate current losses, and risk losing your supply chain? Or do you take a longer term view, and try to help protect your supply chain?It’s a question that is more than just an interesting point for discussion. There is no simple answers. In game theory’s Prisoner’s Dilemma, two completely rational individuals (companies) might not cooperate, even if it appears that it is in their best interest to do so. In this paradox decision analysis, both parties choose to protect themselves at the expense of the other – however the outcome is not optimal for either.In February buyers feared that orders would be delayed or go unfilled when Chinese production was shuttered halting the raw materials the supply the region’s manufacturers.Now, as brands face an unparelleled retail shut downs in key markets, the last thing they want is inventory.Suppliers are now facing a crisis that could be more devasting to them than the health crisis: massive order cancellations.Short Term Survival or Long Term GoalsFor brands, the dilemma is whether to focus entirely on stemming short term damage from the collapse of retail sales – but jeopardize a supply chain that has been carefully contructed over many years– and which has proven difficult to replace. The effort to diversify sourcing over the past two years has shown this to be so.If brands survive the coronivirus crisis but their suppliers don’t, they could be facing crushing supply shortages. At the very least, with fewer suppliers prices would be higher – a lot higher. Depending upon how long this health crisis lasts, the impact of a crippled supply chain could end up being more severe than the retail sales losses during the pandemic. Ironically, just when brands had determine to reduce their dependence one or two sourcing locations, they might find that they have few alternatives.Can We Turn a Lose-Lose into a Win-Win?In the midst of a crisis it’s difficult to think long term. The uncertainly of the current situation, plus the time and energy trying to stay alive leaves little bandwidth for planning.However this will pass and what was the future will now be the present. Will we have overcome one crisis only to face another?Or is there a way to put our heads together and find a way forward that helps mitigate the losses for all parties and keeps our supply chain intact?We all stand stronger when we stand together. Subscribe to our Inside Fashion Briefing eNewsletter Our Inside Fashion Briefing eNewsletter brings you a snapshot of insights, analysis and opportunities in the global apparel market.