Supply chain resilience
Last updated August 24, 2023
What is supply chain resilience?
Supply chain resilience refers to the ability of a to anticipate, prepare for, respond to, and recover from disruptions and unexpected events while maintaining its core functions and operations. These disruptions can include a wide range of events, such as natural disasters, supply chain interruptions, geopolitical conflicts, economic downturns, pandemics, and more.
How can supply chains enhance resilience?
Strategies for enhancing resilience include:
- Identifying potential risks and vulnerabilities within the supply chain, both internal and external.
- Reducing dependency on a single source of supply or a single geographic location.
- Designing a supply chain that can quickly adapt to changing circumstances, such as shifting production or changing .
- Maintaining strategic stockpiles of critical components or products.
Why is supply chain resilience important?
Supply chain resilience helps
- Prepare businesses for and respond to unexpected disruptions.
- Identify, assess and mitigate risks, safeguarding against potential vulnerabilities and minimize financial and operational risks.
- Operations to continue smoothly even during disruptions, preventing production halts, delivery delays, and customer dissatisfaction.
Is supply chain resilience only about avoiding disruption?
No, supply chain resilience is about effectively responding to and recovering from disruptions while minimizing their impact. It’s not solely about prevention.