Disruptions will keep being an issue. The question is, are you prepared for the next?
Recent supply chain disruptions like the pandemic or the container ship blocking the Suez Canal showed the inability of many businesses to rapidly react to unforeseen changes in demand or supply. Today’s supply chains are global and complex. The current war with Ukraine has shown yet again how easily they are disrupted. The question is not if more disruptions are to be expected in the future, rather are you prepared for them?
Here is our checklist with the key steps to increase supply chain resilience:
Keep your supply chain in sync with the strategy
- Understand your value chain: It is very important that you truly understand your value chain and define a business strategy that matches your supply chain capabilities. A detailed supply chain network model and a target operating model will help you in achieving this.
- Keep track: Supply chains evolve organically by a sequence of decisions. Keeping the optimal track requires a periodical assessment of your performance.
- Think beyond cost cutting: Sustainability and global supply chain disruptions are there to stay. In the long term, cost-cutting leaves your supply chain vulnerable and inevitably leads to more costs. A resilient supply chain will mitigate these risks.
Embed supply chain resilience into strategic development
- Test strategies: Develop a digital model of your supply chain. A so-called ‘digital twin’ provides you the ‘sandbox’ to test any strategy to detect an unexpected impact or seize opportunities when they arise.
- Assess risks: Traditional supply chain network modeling methods focus on the probability and impact of potential incidents. The EyeOn approach measures risk exposure and supply chain resilience by understanding time-to-survive (TTS) and time-to-recover (TTR) aspects. Our approach allows you to assess the impact of risks regardless of their cause or probability.
Create a data-driven culture
- Create a data-driven culture: A data-driven culture is an essential part of your digitalization journey.
- Take advantage of data: Data is the new gold. Use it to make better decisions on all levels.
- Avoid analysis paralysis: Accept uncertainty – the reality will be different.
- Use a fit-for-purpose level of modelling; when details matter: cascade down in the planning hierarchy.
Let’s increase supply chain resilience together!
We are happy to discuss your company’s supply chain risk management one-on-one. Please feel free to contact us! EyeOn can support you in building a more resilient supply chain, explore our website!