Entering 2023, businesses have been forced to review their supply chain resilience. Supply chain disruptions in 2022 highlighted the need for companies to become more agile and find ways of improving their ability to withstand internal and external challenges. But building a resilient supply chain isn’t just about fixing existing problems; it’s about adopting sound practices that are likely to help with current issues, as well as those down the line. In this blog post, Benjamin Gordon Cambridge Capital discusses why having robust supply chain resilience is essential for your business and how you can implement such changes in your organization.
Building Supply Chain Resilience Is Much More Than Fixing Supply Problems, Says Benjamin Gordon Cambridge Capital
Building supply chain resilience is much more than simply fixing supply problems, says Benjamin Gordon Cambridge Capital. It involves creating a structure that can anticipate, mitigate and respond to potential disruptions with agility.
Resilience in the supply chain consists of three aspects: preparedness, responsiveness, and adaptability. Preparedness considers the proactive measures organizations take to reduce risk and ensure readiness in the face of any disruption, such as developing suppliers across geographic areas or having alternative sources of raw materials. Responsiveness is about properly deploying resources to handle unforeseen circumstances, like allocating inventory efficiently when demand fluctuates unexpectedly. Adaptability looks at how quickly processes can be adjusted in order to accommodate different types of scenarios, such as changes in regulations or customer preferences.
To build resilience in their supply chain, organizations must implement an integrated system that can quickly detect and respond to supply chain disruptions. This system should be able to provide visibility into the entire supply network and anticipate potential problems based on real-time data. Having access to reliable information about the status of suppliers and customers is essential for providing timely responses to any disruption. Additionally, companies should establish a crisis management team with clear protocols for dealing with unexpected events.
According to Benjamin Gordon Cambridge Capital, the need for resilient supply chains has been further highlighted by the impact of COVID-19 on global trade. According to statistics from World Trade Organization (WTO), global merchandise trade volumes fell 9.2% in 2020 compared to 2019 as countries implemented strict border closures and travel restrictions, which disrupted international shipping networks. In order for businesses to survive in this uncertain environment, it is essential for them to strengthen their supply chain resilience.
One example of how a company successfully built resilience into its supply chain is Unilever. The consumer goods giant has invested heavily in creating an agile supply network that can quickly respond to any disruption. It uses digital technologies such as artificial intelligence (AI) and machine learning (ML) to monitor its suppliers and leverage real-time data for better decision-making. Additionally, Unilever encourages collaboration with its vendors by sharing best practices and working together to develop innovative solutions. Such efforts have enabled the company to become more resilient during times of crisis.
Benjamin Gordon Cambridge Capital’s Concluding Thoughts
In conclusion, building supply chain resilience involves much more than just fixing the problems at hand. Organizations, as per Benjamin Gordon Cambridge Capital, should create a structure that can proactively identify and respond to potential disruptions with agility. Utilizing digital technologies, establishing crisis management teams, and encouraging collaboration are key strategies for creating resilient supply chains in today’s uncertain environment.