Making your supply chain more resilient

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With everything that’s happening in the world right now, supply chains have become a trending topic. Over the past 20 years, there have been numerous external shocks to the global supply chain. In the early 2000s we have 9/11, then in 2008 we saw the Global Financial Crisis, more recently, COVID has shocked our supply chains and now there are strong inflationary pressures globally. There shocks are happening with more frequency, and with increasing impact. 

In addition to this, business landscapes are changing dramatically. Organizations are moving to get more product to market, to expand their product mix, they’re looking to get into new channels, like e-commerce and fulfil directly to customers. 

With all this pressure, supply chains are facing more complexity and risk. And although cost will always be important, addressing these changes requires flexibility, responsiveness and speed. So looking to the future, having shorter, more nimble supply chains will be critically important in unlocking value and managing risk. In order to do this, there are a few things to consider:

First, supply chains need to reflect the business strategy – where does your business plan to be in five years? That’s what you need to be planning for today. 

Second, white-sheet your supply chain – think about the future without constraint, rather than starting with the current state. This will enable you to develop a clear vision of what is possible and prioritize what will deliver the most value. 

Third, you need to be systematic and think end-to-end – supply chains are complex systems, and if you try and address them in silos you will miss the big opportunities. 

When done right and using these tools, supply chains can become a competitive advantage to your business. As experts in procurement and supply chain, we can help you to evaluate your supply chain, understand the risks and then develop a roadmap for change. 

Now, as a part of Bain & Company, we have access to even deeper knowledge and industry insights to support you to realize the most value, generate benefits and build resiliency in your supply chain over time.