Businesses are dealing with tough challenges in handling their supply chains.
Those who can quickly adapt and create smart logistics chain plans will set themselves up for success down the road.
The supply chain is crucial for any organization, and especially now, with the uncertain economic future, having a strong and lasting chain of production is more vital than ever.
One way to achieve supply chain resilience is by using sustainable products like corrugated plastic containers offered by Flexcon.
To know more about how a resilient supply chain can help your business, keep reading.
What is Supply Chain Resilience?
When there are problems with operations, a resilient supply chain can quickly fix them by using flexible backup plans and accurate predictions.
This resilience includes finding supplies, handling logistics, and making sure that goods and services are delivered on time.
How Does Supply Chain Resilience Work?
A strong supply chain is one that is prepared to respond swiftly to unforeseen circumstances and has a versatile backup strategy in place.
However, genuine supply chain resilience entails not merely responding; it also entails anticipating and avoiding problems whenever feasible. Here is how a resilient supply chain actually works:
1. Smart planning for smooth operations
Logistics chains that are resilient, strategically coordinated, and plan production, ensuring that all components run smoothly. It aids in problem anticipation, reduces the impact of disruptions, and improves overall operational efficiency.
2. Data: The power player
It uses AI-powered digital systems for extensive data analysis. This helps to manage diverse data sets, enabling intelligent automation and real-time insights for swift disruption responses.
3. Diverse connections for stability
By diversifying connections, the supply chain mitigates reliance on a solitary partner or region. It monitors international collaborations using technologies such as sensors and blockchain to ensure adaptability and stability.
4. Building buffers for unpredictability
They shift from ‘just in time’ to ‘just in case,’ utilizing digital tech for on-demand manufacturing and virtual inventories. It builds buffers for capacity and inventory, ensuring resilience in the face of unexpected disruptions.
Key Benefits of Resilient Supply Chain
Balancing supply and demand is a big challenge for supply chain managers. Some companies are learning the hard way about the real cost of cutting corners on diversification and resilience measures.
However, for those investing in diversification, resilience, and supply chain tech, there are plenty of potential benefits.
1. Improvers overall operational efficiency
By reducing risks, resilience enables increased capital expenditure on innovation and expansion. A 2020 Bain and Company analysis found that organizations that placed a high value on supply chain resilience achieved output capacity expansion of up to 25% and reduced product development cycles by as much as 60%.
2. Increases productivity with resilient tech
Resilient supply chain technologies augment productivity as a whole. Global supply chain leaders reported increased productivity in 2020, and 93% of them intend to prioritize supply chain resilience strategies in the future year, according to a McKinsey survey.
3. It helps to cut down on risks
Frequently, supply chain operations expose businesses to substantial dangers. By providing visibility throughout the network, resilient supply chain technologies enable organizations to optimize and adjust processes in real-time, thereby cutting down the risks.
Conclusion
It is time to strengthen your supply chain resilience if you wish to ensure that your company can continue to operate efficiently despite lockdowns, pandemics, and other unforeseen circumstances. It will facilitate the expansion of your company while competitors struggle to bridge the disparity between supply and demand.