Five Supply Chain Strategies to Achieve Resiliency and Avoid Risk
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⇨ Supply chain executives encounter challenges with customer expectations, mainly preserving product and service quality while enhancing interaction pace.
⇨ However, given the multitude of other potential risks, there is no margin for weak spots in the supply chain.
⇨ Fostering a risk-resilient supply chain, capable of forecasting and adapting to any situation, distinguishes successful businesses from mere survivors.
A global survey conducted by Oxford Economics and SAP involved 1,000 supply chain executives across 10 nations and 15 industry sectors revealed that supply chain executives:
- Encounter challenges with customer expectations, mainly preserving product and service quality while enhancing interaction pace.
- Occasionally overlook the impact that effective collaboration and transparency in supply chain processes have on catering to customer requirements.
- Are seeking innovative technologies to mitigate risk.
- Are increasingly recognizing the imperative nature of establishing sustainable business operations.
Various factors, such as geopolitical instability, the global COVID-19 pandemic, escalating fuel prices, rampant inflation, augmenting regulations, and international demand for CO2 emissions reduction, have strained numerous organizations. Executives comprehend that any of these conditions could unexpectedly ignite, disrupting their business operations. Given the multitude of other potential risks, there is absolutely no margin for weak spots in the supply chain. Taking these five steps can help organizations develop resiliency and avoid risk:
It is vital to prioritize supply chains in business strategies. Recent experiences indicate that fostering a risk-resilient supply chain, capable of forecasting and adapting to any situation, distinguishes successful businesses from mere survivors. Initial strategies should focus on localizing the sourcing and manufacturing of goods relative to actual demand.
Future-proofing against risk is crucial. Supply chain executives are most familiar with the threats that could endanger their operations. Availing accurate, real-time data—from all supply chain nodes and tiers—to these practitioners can enhance visibility, enabling swift and informed decision-making.
Harnessing the potential of cross-network collaboration is key. Dismantling silos across departmental and corporate boundaries fosters an informed and cooperative end-to-end business process. Supply chain visibility is instrumental in addressing current and future business problems.
Utilizing innovative technologies can catalyze business and process innovation. Increasing productivity and efficiency through task and process automation, applying machine learning algorithms to detect patterns, risks, and opportunities invisible to the human eye, and empowering users with predictive analytics and decision-support tools are effective strategies.
Adopting a sustainability-first approach is essential. “Going green” should transcend being a mere catchphrase. Sustainability needs to be integrated into every supply chain process. Building a reputation as a conscious enterprise, and thereby creating a loyal and satisfied customer base, fosters a resilience capable of withstanding any challenge.