Boost your company’s supply chain resilience and sustainability

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Supply chain risk management has evolved throughout the years, stepping away from only focusing on individual companies to instead addressing entire supply chains. It was established that traditional risk management processes, such as identifying, assessing, treating, and monitoring risks, struggle to scale up to the complexity of interconnected supply chains.

While we can identify the potential risks when reviewing a single company, doing so for a supply chain involving a multitude of companies is much harder and often considered impractical. Let us take a look at the 5 key areas companies should invest in, to build a robust supply chain in today’s unpredictable business environment:

  • Visibility: Businesses that can easily monitor the supply chain in real-time will be able to identify areas of risk and be able to implement proactive strategies to safeguard against supply chain shortfalls.
  • Flexibility: Businesses that have the capacity to adjust business operations and processes quickly will be able to outmanoeuvre their competitors in the event of supply chain disruptions, ensuring smooth sailing in rocky seas.
  • Collaboration: Maintaining strong relationships and practising open communication across the supply chain can prove beneficial when the supply chain in impacted by external factors.
  • Redundancy: Implementing redundancy and backup policies can help businesses mitigate risks associated with supply chain disruption, thus ensuring smooth operations.
  • Risk Management: Proactively identifying and addressing potential risks can further safeguard your business and ensure uninterrupted business processes.

Understanding the importance of supply chain resilience for businesses

Businesses and economies that strive for supply chain resilience can experience operational stability in light of potential disruptions. Let us take a closer look at why supply chain resilience is vital:

Reduce the impact of supply chain disruptions

The supply chain, like our economy, can be affected by a myriad of events such as, natural disasters, geopolitical conflicts, severe weather, cyber warfare, labour shortages, and health crisis to name a few. By having an adaptable supply chain, your business can respond faster to potential disruptions and reduce the effects these disruptions have on your business operations.

Improve customer satisfaction and confidence in your business

When it comes to building and maintaining customer satisfaction and business confidence, consistency is key. Being able to consistently deliver products to a clients’ door, even in the face of disruptions, requires your business to have a robust supply chain. This helps safeguard your company’s reputation and optimises customer retention.

Give your company a competitive edge

By maintaining a resilient supply chain, companies will be able to react timeously to potential market fluctuation and disruptions, providing them with a much-needed competitive edge. This ability to adapt and react allows businesses to not only thrive during disruptions but be able to identify new market opportunities.

Reduce your company’s financial losses

Supply chain disruptions can have a negative impact on a company’s finances, from manufacturing delays, material price hikes, or decreases in sales. Businesses that implement a robust supply chain strategy can mitigate any financial risks by enabling operations to continue during or shortly following a disruption.

Supporting regulatory compliance in the supply chain

In a complex regulatory environment, the need for supply chain transparency and risk management becomes vital. A strong supply change can help businesses in adhering to industry regulations, thus safeguarding them against the threat of penalties.

How can you enhance your supply chain resilience?

Optimise supply chain visibility

To optimise supply chain visibility with the intent to create a resilient supply chain strategy, businesses need to improve real-time tracking, end-to-end transparency, analyse industry data, join collaborative platforms, and consider supply chain mapping to make informed business decisions. This will help businesses effectively manage risks and improve reactivity to disruptions.

Establishing redundancy procedures

A way businesses can establish redundancy in supply chain resilience is by creating robust backup systems and processes that will help minimize the impact of disruptions. Companies could maintain a surplus inventory, diversify their suppliers, set up backup facilities, or use alternative transportation modes for your cargo.

Creating stronger supplier relationships

Building strong supplier relationships enhances supply chain resilience by promoting collaboration, trust, and open communication. This involves actively sharing information, working together to solve problems, and forming long-term partnerships with the goal of improving business adaptability and resilience.

Broaden your supplier net

Having multiple suppliers provides your business with the necessary flexibility it needs to establish supply chain resilience. Instead of relying solely on one supplier, you can safeguard your business against disruptions.

Looking to technology

Technology can help improve supply chain visibility for your business, help you predict and mitigate disruptions, easily automate processes, and optimize collaboration. Therefore, it may be worth considering on your journey towards supply chain resilience.

Conclusion

Supply chain resilience plays a critical role in assisting organizations in effectively managing disruptions and maintaining operational functions. By expediting revisions to your supply chain resilience strategy can help your business evolve and adapt in the ever-evolving setting. It is through these changes, that your business can embrace supply chain visibility, improve real-time information exchange, and collaborate with suppliers across the globe.

At M6T, we help our customers navigate the uncertainties of the supply chain, by providing them with the necessary insights they need to make informed decisions. Let us help guide you in your journey when it comes to transporting your cargo from A to B. Contact your nearest branch JHB or DBN today to find out more.

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