More than 80 percent of organisations have reported their supply chains being negatively impacted by the COVID-19 crisis, with a vast majority struggling across all aspects of their operations. according to new research from the Capgemini Research Institute.
Was your company able to bounce back from difficult conditions imposed by 2020 & early 2021?
If yes, then you have a resilient supply chain.
Supply chain resilience is the ability of a supply chain to withstand disruptions & be prepared for unexpected troublesome events.
The pandemic has not just affected the businesses but the customers as well. Customer buying patterns have changed, further affecting the manufacturing operations making it hard to plan and forecast accordingly.
According to EY, by focusing on key 5 areas; we can move our supply chains towards resilience.
1. Risk Assessment of Supply Chains- by assessing the magnitude of impact of disruptions on supply chains, we can identify the weak links or the prone links of the supply chain.
2. Always Have a Plan B, C, D- in case of disruptions it is always safer to have a backup plan to avoid any stoppage in operations. These can be alternate supplier networks, ensuring visibility & monitoring by investing in key supply chain capabilities.
3. Ensuring continuous improvement of systems & facilities. Establishing a early warning system to facilitate rapid response to disruptions.
4. Establishing clarity in operational procedure in case of any disruptions to avoid any confusion & miscommunication.
5. Pre-defining a recovery roadmap to reduce the aftereffects of the disruptions.