Supply chains are more Complex and Distributed than ever before. With the extent of Globalization and interconnection between the countries, there is a lot of scope for the loss of control and lack of visibility. Threats to the Supply chain and the Company have been higher than before and are much disruptive.
The COVID situation across the world has created uncertainty bringing the majority of businesses down to their knees. The disruption of the global supply chains is inevitable across several industries that were impacted by large-scale. The Pandemic has brought in several challenges. While solving them, by maintaining the continuity of the goods, managing inventory readiness, and client renegotiation, it is also time to re-look at the strategic planning to sustain this economic recession.
The supply chain is a vast and complicated network. One part of the network is tendered to risk and many other parts are subjected to disruption. It has become very important to understand the complexity of supply chains and deriving strategies to make supply chains work efficiently while mitigating the risk such as pandemics.
There are solutions that a business can use to take lead, navigate, and cultivate resilience in their supply chains. This can help recover by turning around an extreme situation and emerge stronger. Building supply chain resilience as a part of the risk management strategy allows businesses to view risk to create value rather than manage it.
The notion of Resilience is not a new concept. To handle the misfortune and unforeseen conditions resiliency has always been a core element of success. Also, obtaining visibility is considered key to the optimization of Supply Chain. When the supply chain gets disrupted, visibility becomes crucial to understand the impact of the disruption on the rest of the supply chain network and develop strategies to get out of the situation.
It is important for management to anticipate the risks and natural hazards, and to balance them with the business needs. With the Quality-risk data, it becomes easier to map and identify the vulnerabilities of the supply chains for increasing operational resiliency.
Then there is data analytics that has become more important in modeling the risk factor. This can give a great insight to the suppliers and the network that could be exposed to natural hazards or any other unforeseen situations. Companies that take the time to understand their supply chains can emerge and sustain pandemic situations.
Here is a quick guide on how to look for the security of the Supply chain network in the long run.
Look at all the risks and inter-connect them, not only the supply chain but also the whole organization. It is very important to get a broader picture of the risk situation, which makes it imperative in understanding and addressing the potential vulnerabilities within the system along with identifying the opportunities for your business to prosper in such challenging times.
Create a consistent view:
Businesses must create a consistent view of risk patterns and manage the data source centrally. Using the data sources can enable businesses with control over their common mitigation framework and makes many complex issues easy to understand even at an advanced level.
Centralized Risk Monitoring system:
A centralized system always saves time, effort, resources, and confusion. There are many advanced tools available in the market that helps monitor your supply chain’s risk workflow. Also, it is important to keep the data consistent within that workflow. It means hosting your facility data, supplier data, and third-party inherent risk data at a single place.
The Ever-changing World:
It is important to remember that the world doesn’t standstill. Lots of risks happen along with life and they are surely not static. The current Pandemic situation of COVID-19 is a perfect example. When the supply chain relies on a chain of suppliers under the name of Globalization, it is very common that the network is subjected to a dynamic environment that can lead to constant or unforeseen changes. By regularly monitoring the risk analytics, businesses will be able to understand which part of their supply chain network is excessively prone to hazards and then adapt the strategy for the organization accordingly.
Once the risks are identified with the risk analysis index, it is very important to focus on creating the risk-mitigating strategies. The strategies have to be developed with huge sensibility and tailored to the specific risks of the supply chain. Being cutting-edge implies that the solution be constantly innovating internally and jointly with the supply chain network, who are on the ground and likely have quality inputs on how to Reduce the Risk.
Communication is the key to solving many problems. It is not possible to distinguish your brand from others only with the risk mitigation strategies. Consumers and the investors would like to know that the companies are responsible to their surroundings and the environment that they operate in.
Properly communicating on how you are responding and tackling the risks is very good for your brand and might help create opportunities for top-line expansion. Use analytics to illustrate your improvement in performance and formulate further strategies. Advances in Data science techniques mean the ground is moving rapidly and those who are quick will be positioned to take advantage and benefits.