Five Ways to Avoid, Absorb and Recover from Supply Chain Disruptions

September 15, 2022

Supply chain resiliency is the ability of an organization to avoid, absorb and recover from the business impact of disruptions through a risk-balanced approach to product, supply chain strategy and network design.

Here are five ways you can increase resiliency in your supply chain. 

Gain visibility of your multi-enterprise supply chain. You need visibility of your entire supply chain, potentially back five levels or more, deep into your supply network, then forward maybe four levels into your distribution network. 

Incorporate agility into your network design. Many companies strain to incorporate multiple data points from a multitude of sources, and end up with a system that’s very rigid, making it impossible to plan and execute against disruptions. Your network should be designed to respond fast to changing circumstances. 

Proactively perform risk assessments. Don’t wait for a problem to find you. You need to actively anticipate the most disruptive things that could happen in the most vulnerable parts of your supply chain network.

Build buffers into your inventory. This is a good time to look across your entire enterprise and determine where you should be placing inventory and how much. It’s not enough to look at your four factories, three distribution centers and 10 suppliers and arrive at a determination for how much safety stock each one needs. You should be looking at your supply chain holistically.

Execute to plans that recognize variability. Today, operational plans are created by deterministic values such as a single demand signal, or a fixed supply lead time or production rate. Demand forecasts need to have a range between optimistic and pessimistic.

Logility offers a holistic, integrated, AI-powered digital platform that allows easy flow of critical data upstream from suppliers and downstream through distribution and delivery. We help our clients reimagine their supply chains as a single, continuous process. 

Please CLICK HERE to download the white paper.

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