Supply Chain Disruptions - Is Your Company Prepared?
Supply Chain Disruptions. Natural disasters, pandemics, wars, civil unrest, cyber-attacks. Most organizations recognize the risk but only few do something about it.
A supply chain disruption is an unplanned or unanticipated event that disrupts the normal flow of goods, materials, or services within an entire supply chain. Since the onset of the globalization, supply chains have progressively become more complex throughout the years. Natural disaster, like those from the 2011 Japan’s Tsunami or Thailand’s floods, but also political instability, cyber-attacks or pandemics as recently experienced during COVID-19, showed the vulnerability of many supply chains.
To minimize the impact of disruptions, supply chain structures need to be agile and transparent to respond fast to unexpected market situations. Transparency across operations of an organization, along with coordinated departments with clear responsibilities, accelerate action and reduce misunderstandings and confusion when a disruption takes place. Diversification of suppliers, market locations, and strategic stock management must be put in perspective to just-in-time delivery strategies or increase of buying power through supplier bundling to find a balance between cost efficiency and operational effectiveness.
It is crucial for organizations to develop a culture of risk and information management across different supply chains which will not only make them better survivors from potential disruption but will leverage competitive advantage from such events.
Contact https://www.foodchainid.com/contact-us/ for more information about supply chain resilience.
Posted on 30 September 2020