Supply chain resilience is the ability to minimize and mitigate disruptions. It requires end-to-end, data-driven supply chain control. With proper control, your transport management system can be improved with transport management solutions, specifically by modelling it after the Origin transport management system.
This capability requires a significant investment of time and resources, especially if a firm has an old school supply chain that largely relies on conservative cost/risk reduction paradigms and manual processes.
Transparency
Transparency refers to the availability and sharing of information and data within and between companies, and across stakeholders. When applied properly, transparency can help reduce risk and increase resilience in supply chains.
Having the ability to access relevant information can help managers identify and prioritize risks in their supply chain. This can help them develop strategies for minimizing those risks, such as resetting inventory targets and sourcing materials locally or regionally.
Leaders can also make sure that they have enough redundancy and adaptability in place to withstand any disruptions. For example, adding back-up supplies can keep products in customers’ hands when supply lines are temporarily shut down.
In addition, the availability of real-time insights can help managers react quickly to changing conditions. For instance, knowing how much a supplier is able to ship in a day allows them to add redundancy or reschedule deliveries so that they can take advantage of current shipping speeds.
Achieving this level of visibility can be challenging, however. Companies often struggle with collecting data from multiple tiers and making it accessible to the right people. This can be a significant challenge, especially with the growing complexity of global supply chains.
It can also be time-consuming and resource-intensive to collect and manage that data. This is why it’s important to find solutions that are easy to use and can provide the information that businesses need to improve their supply chains.
For example, a software solution like Tradeshift can provide end-to-end supply chain visibility by enabling collaboration between suppliers at each level. This can also give companies the ability to map their supply chains and identify tier-specific vulnerabilities.
As a result, they can be more proactive in their approach to sustainability. They can trace their raw material supply, track the sourcing and transport of goods, and ensure that their suppliers are not polluting their local ecosystems or employing unethical labor practices.
Additionally, transparency can help improve employee engagement. It can help employees feel that they are making a difference in the world, and that their work is contributing to the overall success of the company. This can improve their loyalty and retention levels, as well as attract top talent.
Redundancy
There are numerous risks to your supply chain, from natural disasters to industrial accidents. While these threats are real, they can also be prevented or mitigated through a robust resilience strategy.
One way to do this is by reducing risk through redundancy. This means storing spare inventory at multiple locations or using backup suppliers.
When used properly, redundancy can help reduce the financial impact of failure as well as minimize operational disruptions. However, a company must take into account the tradeoff between the benefits of storing redundant stock and capacity and the cost of operating it.
For example, if an organization has three pumps, but only two are needed to meet demand, one pump could be replaced by another to keep operations running smoothly without any downtime. Similarly, a redundant data set could be stored offsite in a synchronized manner to prevent any potential loss of information in the event of a computer crash or hard drive failure.
As the recent COVID-19 outbreak highlighted, companies have a hard time surviving even minor disruptions to their supply chains. That’s why many supply chain managers have started looking at ways to reduce the risk and increase resilience in their supply chains.
To do this, they have started implementing strategies like diversified sourcing from offshored and nearshored suppliers, emergency stockpiles and safety stocks. In addition, they have started collaborating with private and public supply chain stakeholders.
The key to a successful redundancy process is to ensure that there is a fair and genuine consultation with you as an employee, at an individual level and possibly through collective consultation, depending on the numbers involved. This must be done at an early stage in the redundancy process and before any decisions are made.
A redundancy policy should include a commitment to finding you suitable alternative employment within the organisation, where possible. This is likely to involve horizontal moves at the same or a lower grade, but it may be that you are offered a job at a different level altogether.
A well-planned and executed redundancy process can ensure that the remaining workforce are not negatively affected by the downsizing, allowing them to maintain morale and remain loyal to the organisation. This will enable them to withstand an economic downturn more easily.
Adaptability
In today’s uncertain business environment, adaptability is a critical skill for supply chain managers. It’s a skill that can help them respond to a variety of challenges, including technology changes, new competitors entering the market, and shifting consumer tastes.
In addition, it helps them build resilience to keep their companies going when disruptions occur. A study of 150 C-suite leaders found that adaptability is one of the top five skills that executives look for when hiring and promoting workers.
Adaptable people are comfortable with change and can make quick decisions when the situation calls for it. They also can work well with other people to get things done. Having adaptability will allow you to stay in the workforce longer, earn promotions and build a reputation as a valuable member of your team.
Many people don’t think of adaptability as a skill, but it is essential to the success of any organization. A company that can’t adapt quickly to changing circumstances will quickly fall behind the competition and could go out of business entirely.
The global climate is continually changing, and supply chains are vulnerable to disruptions caused by these changes. Companies must build resilience into their operations and infrastructures to prepare for future shocks and to keep their businesses running smoothly.
This isn’t always easy, especially for small businesses that may have limited budgets or resources. However, there are some simple ways to build adaptability into your supply chain that will save money in the long run and prevent your business from losing customers and revenue.
By adapting to the demands of the current environment and making a few changes to your systems and processes, you can ensure that your business is able to thrive in the changing world. This will help you avoid falling behind and will give your company a competitive edge over the rest of the competition.
A key component of building adaptability into your supply chain is keeping up with the latest techniques, tools and projects. This will help you and your team to keep up with the latest innovations so you can be prepared to tackle challenges and changes in the future.
Communication
Communication is a critical skill for reducing risk and increasing resilience in supply chains. It’s a two-way exchange that allows people to share ideas, thoughts, emotions, and messages with others within and outside the organization.
Whether you’re a manager or project team member, you need to understand how to communicate with others. This includes getting the right message to the correct audience and making sure it is conveyed in a way that is coherent and strong.
A lack of communication can result in a company being blind to potential problems that could impact its bottom line. It can also keep staff from focusing on high value-added activities, such as implementing improvements and dealing with problems that arise.
There are several ways to improve communication in your supply chain. Among them are developing better collaboration, analyzing supplier networks and labor, and monitoring demand shifts to identify areas that are susceptible to disruption.
One of the easiest and most effective ways to improve collaboration is to create a common language for the entire company. This helps people feel that they know each other and understand each other’s concerns.
Another way to develop communication is to listen carefully to those around you. This includes people in your community, suppliers, and employees. You can learn a lot about how people feel about your company and its products by listening to them and what they have to say.
Then, you can tailor your communication to their needs and expectations. You can do this by framing your information in a positive or negative way and by considering the impact on their lives.
When you’re communicating with the public, it’s important to be honest and frank. Be aware of their feelings and emotions, and be willing to admit when you’re wrong.
You should also try to build trust and credibility in your community. This can be achieved by stating your credentials, admitting mistakes, and disclosing information quickly. Keeping these things in mind can help ensure that you maintain your relationship with the community and keep them safe.