Building a resilient supply chain

Supply chain and logistics are constantly evolving. Today, building sustainable supply chains is a priority in every industry around the world. The health situation and other cyclical problems have brought current supply chains to the brink of collapse.

 What needs to be done now to create a resilient supply chain that can withstand any disruption and, above all, overcome the current obstacles ?

Supply chain design

• Product innovation

Resilient products are needed to reduce risk. The product has perhaps the most significant impact when building a sustainable supply chain. By choosing which ingredients, components or materials are used, which ones are required for packaging and where to source them, the entire production process is detailed and energy consumption is determined.

 Today, a company is not able to consider all its constraints and therefore only makes ad hoc decisions.

• Draw a supply chain network.

This allows the trader to decide on his distribution network or other more specific processes such as his return methods, for example, all taking into account the costs, the time required for each step and action, and the resources and locations available. The aim is then to adjust the processes and optimise each production site, warehouse and distribution centre to ensure the efficiency of the system.

Monitoring the supply chain

Generally, traders only have a direct link to their closest suppliers in the supply chain. To be more efficient, it is necessary to create links between all the actors in the chain, even between the first and the last actor. Such traceability solves organisational problems and helps in decision-making.

The control tower system serves to monitor the entire supply chain and to share information with all the actors in the chain in order to save time and reduce errors in the transmission of information (e.g. on the receipt of materials and the proper conduct of transactions).

Data must be properly collected and prepared for processing, analysis and thus improve visibility. This is a necessary step in analysing the supply chain to find out what might be disrupting it. By having access to advanced reports, the company has the best indicators and KPIs (Key Performance Indicators) to intelligently rethink the supply chain.

Supply chain operations

• Risk assessment

It is important to assess the vulnerability of your supply chain. Having good data helps to prevent risks as such information helps to determine inventory levels and when they will be critical, so as to better respond to the increased level of risk.

• Event management

At present, retailers make decisions only in the short term and on the basis of cost. However, they need to be able to manage disruption effectively by taking into account the information gathered from the risk assessment. They must be able to communicate the situation to guide supply chain professionals.