Note: Today’s post is part of our ‘Editor’s Picks’ series where we highlight recent posts from our sponsors that provide supply chain insights and advice. This article is by Alfred Hille at Descartes and examines supply chain resilience during waves of disruption.
In today’s world where major disruptions to global commerce are more the norm than the exception, organizations are increasingly realizing that they need to assess their international business strategy at least annually, if not more frequently. , to build supply chain resilience and propel their global growth momentum.
This was the key takeaway from a recent webinar titled “How to Respond to Emerging Waves of Disruption and Enable Business Growth,” co-hosted by Descartes Systems Group and leading global trade association, Women in International Trade Northern California.
Keynote speaker Jackson Wood – Descartes Systems Group, Global Trade Intelligence, Industry Strategy Director – said the precisely planned and highly synchronized supply chain networks that made trade flows predictable in the past require more maintenance. , tuning and adjustments to maximize performance in the current operating environment.
Threats to supply chain resilience
Just when we thought we had turned the corner with COVID, geopolitical turbulence in the form of the Russian-Ukrainian war rattled the agriculture, metals, energy and other markets. The conflict has also resulted in economic sanctions against Moscow and its allies, giving Russia the dubious distinction of being the most sanctioned country in the modern world.
On top of that, there’s the fact that we’re still dealing with the ongoing effects of COVID, which are manifesting in lockdowns in China, as well as port congestion around the world that doesn’t look like it’s going to be resolved anytime soon. And lest you sound like the clichéd TV commercial when they say “Wait but there’s more…”, there really is more, much more, affecting supply chain resilience on our doorstep now and in the future. horizon. Brexit is still a work in progress. Inflation is on the rise. We are talking about an economic slowdown. And trade disputes are coming back to the fore.
“We are living through an unprecedented period in our history. And the pressures we face are not expected to abate for the foreseeable future,” Wood said. “The only strategic point to emphasize at this point is that the risk exposure of all these challenges for companies is significant. And these companies are trying to figure out how to deal with it, to make their supply chains more resilient in order to maintain their growth potential on track by delivering quality products on time and maintaining a satisfied customer base.
What is Supply Chain Resilience?
In its purest form, supply chain resilience is the art and science behind a well-functioning process system designed to deliver goods and services to consumers, and where those systems can quickly recover from shocks such as pandemics, wars, natural disasters and trade disputes. But these shocks are not limited to en masse life-changing events. They can include business challenges such as new market trends, changing or adapting consumer behavior, and unexpected competitive moves.
Organizations that succeed in minimizing the negative effects of disruptive forces are in a strong position to be able to maintain their trade flows to global markets and ensure that their growth trajectory remains healthy. It would also be a significant competitive advantage over their rivals.
To read the full article, click here.
