How Can Organisations Achieve a Resilient Supply Chain?

Posted by Ankit Kohli on January 29th, 2016

A resilient supply chain is exactly what the term suggests—a supply chain that remains unfazed by different kinds of vulnerabilities. Because modern supply chains are largely an integration of suppliers along with purchasing organizations where each is viewed as a strategic partner that adds capability, scale, and efficiency and at the same time drives innovation, supplier risk management and the establishment of resilient supply chains are gaining increased attention in organizations.

Supply chains face a lot of vulnerabilities. The recent flooding in Cumbria is a grim reminder of UK's vulnerability to extreme natural disasters. Over the years, instances of floods, hurricanes, tornadoes, tidal surges, and similar weather-related disasters have caused great devastation to life and loss to economy in the country. While the government are diligent in taking and implementing preventive steps to minimise damage, there is so much more that needs to be done if effects of these vulnerabilities are to be minimised.

Many companies fail to build a resilient supply chain because when disaster strikes, their first impulse is to move out of the stricken region or change suppliers. This, however, isn't a sustainable solution to the problem. What businesses, procurement, and supply chain managers must do is to first recognise and understand the very challenges that these natural occurrences and other vulnerabilities pose and then opt to work collaboratively with every partner within the supply chain in order to minimise damages and disruptions to the organisation.

While natural disasters are impossible to predict, they aren't impossible to prepare for. If your business still lacks a plan for preventing, managing, and recovering from these kinds of disasters, you are twice as vulnerable to disruption and loss, both materially and financially, whereas having a plan in place builds a shield around your supply chain, leading to a more resilient business. How do you achieve this?

The key is a collaboration with critical suppliers. Step up your commercial relationships with your suppliers in order to create a more collaborative partnership aimed at engaging and improving their ability to deal with these vulnerabilities. This collaborative relationship will help all buyers and suppliers in the supply chain gain access to expertise and resources that can help them build upon their risk management strategies if they lack the resources to handle them on their own. All these can start with a framework that helps analyse exposure to risk, based on their location, resources, and ability to relocate, when needed, followed by assessment for emergency preparedness and the implementation of best practices during a disaster.

About the Author:-

Pure Research provides customised research and business intelligence to corporates, public sector organisations, financial services firms, and professional services firms worldwide.  The company delivers high quality procurement and supply chain intelligence to procurement professionals and their organisations. It provides business and market intelligence to strategy and marketing teams at corporations, and to professional services firms. Pure Research also provides customised financial research and ESG research to financial services firms. Analysts from Pure Research work as an extension of their client organisations to deliver high quality research and insights. The company has offices in London, U.K. and Delhi, India.

Business Name:  Pure Research Private Limited

Contact Person: Ankit Kohli (Director)

Address: Kemp House, 152 City Road, London EC1V 2NX

Phone: +44 (0) 20 7193 9497

Email: contact@pureresearch.co

Website: http://pureresearch.co/