The ability for resistance and recovery defines a resilient supply chain. A supply chain involves a set of actions that lead to delivering a product or service to a consumer. Moving and processing raw materials into finished products, transporting those items, and distributing them to end-users are all parts of the process.
Operational risks and interruptions can endanger different sections of the supply chain, as we've witnessed with COVID-19 and other global disasters. Global supply chains have faced substantial problems due to the COVID-19 pandemic. Multiple lockdowns continue to suppress, if not entirely stop, the flow of raw resources and finished products, putting producers at a disadvantage.
That's why supply chains must maintain resilience. Here are the reasons why it’s important to maintain supply chain resilience:
1. Productivity gains
Resilient supply chains contribute to a system-wide increase in productivity. Supply chain leaders from different countries report increased productivity as a result of resilient supply chain systems, according to a 2020 McKinsey poll, and 93 percent of those surveyed expect to place more focus on resilient supply chain methods for investment in the succeeding years.
2. Improved efficiency in operations
Greater resilience frequently means more opportunities to invest in innovation and growth. Companies that prioritized supply chain resilience had up to 60% quicker product development cycles and were able to boost their output capacity by up to 25%, according to a 2020 global business analysis by Bain and Company.
3. Risk reduction
Supply chain operations are often at risk during disasters and disruptions. By their very nature, supply chains are global in scope and complicated in operation. As a result, they are particularly exposed to danger. Resilient supply chain systems reduce risk by giving organizations real-time visibility into all operations across the network, improving and adjusting their processes and logistics.
According to a poll conducted by the Institute for Supply Management in April 2020, 95 percent of businesses have faced operational issues due to the pandemic. Business executives worldwide believe that if they want to be more robust and competitive in the present market, they will need to modernize and make significant changes to their supply chain operations.
More than just resisting and recovering are built into the most robust and agile supply chains. They are constructed utilizing business continuity tools and processes involving state-of-the-art technology to forecast, anticipate and adapt promptly to whatever threats or opportunities the future may present.
Here's where BCM next can help you. Using artificial intelligence (AI) and data analytics, BCM next, your intuitive assistant, will orchestrate an end to end value chain mapping. You will experience an engaging dialogue that scripts business continuity plans, allowing a culture of resilience to develop.
Show how resilient your supply chain can be with BCM next!
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