What we cover in this blog?
- How Does Resilient Supply Chain Work?
- Create a plan
- Understand and modify the data
- Diversify suppliers and partners
- Implement the dimensions
- Strategies For Supply Chain Resilience
- Inventory and capacity buffers
- Platform, plant, or product correspondence
- Ecosystem partnerships
- Pillars Of The Resilient Supply Chain
Supply chain leaders of Violin technologies always strive to create a change in manufacturing and supply chain to survive in a better place in the global supply chains of competitive businesses worldwide. They have the best supply chain managers to handle potential financial risks by following every resilient supply chain strategy to acquire a competitive advantage among the leading companies in the market.
How Does Resilient Supply Chain Work?
Every supply chain management in a manufacturing industry should always be flexible in identifying the supply chain risk, forecasting an anticipated supply chain disruption, enhancing safety regulations, market trends, logistics partners, supplier networks, supplier relationships, etc. Here are a few steps of supply chain resilience:
- Create a plan- Strategic supply chain planning is the most crucial and initial step before starting any activity to have great supply chain performance. A company should gather information on all the issues to have better visibility. Proper supply chain planning allows a company to identify the supply, required demand, and production process.(can be written better) Proper enterprise resource planning is a key to any business model to stand in the global economy as the best resilient enterprise.
- Understand and modify the data- Resilient supply chains work by understanding and enhancing the data by adopting electronic data interchange platforms and digital systems like big data and artificial intelligence. They could help analyze better and enhance the global supply chain operations, production capacity, supply networks, manage component shortages, etc. Violin technologies maintain reverse logistic data by keeping a record of raw materials, key suppliers, customer information, etc.
- Diversify suppliers and partners- Usually, as per the traditional business strategy, manufacturing industries minimize the partners and suppliers to reduce the cost of logistics and operations. Still, as the world roams around social media, industries are more open to getting market awareness about retaining multiple supply locations to expand the business and respond quickly from any region to build supply chain resilience in the entire network.
- Implement the dimensions- Covid 19 pandemic hits manufacturing companies very badly. Then the industries know that they should prioritize resilience-building solutions when restructuring the supply chains. Building supply chain resilience operations should be on-demand manufacturing, adopting digital technologies.
Strategies For Supply Chain Resilience
During Covid 19 and other disruptions, companies have created a balanced resilient supply chain to maintain efficiency and assured supply. To accept such challenges, companies have created a few strategies to overcome every problem and manage components such as:
- Inventory and capacity buffers- Buffer is one of the much-needed supply chain resilience strategies to enhance production facilities by procurement specialists in the company and the inventory over safety stock requirements.
- Multi-sourcing- Natural disasters in multiple locations like Japan and Thailand destroyed the supply chain globally. Multi-sourcing can be implemented by giving business to many other suppliers or working with the existing suppliers who can be able to produce from several locations.
- Nearshoring- Apart from multi-sourcing, it is one of the strategic responses to the present supply chain model, which means the process of delivering operations to the countries which are close and emerged as a strategic plan to lack of diversified resources caused because of offshoring. Companies like Toyota, Whirlpool, Inditex, etc., use this strategy.
- Platform, plant, or product correspondence- This means sourcing multiple policies to create many opportunities to place higher volumes among the supplier base, which helps in enhancing resiliency.
- Ecosystem partnerships- During Covid19, every manufacturing industry realizes they should have a diversified approach to sourcing. Connected to multiple stakeholders, raw material suppliers, and external service partners help overcome and better resilience in the future.
Pillars Of The Resilient Supply Chain
There are five pillars of agile supply chain resilience, such as:
- Vulnerability- The key challenge to analyzing the supply chain’s vulnerability is identifying the disaster in a particular region where suppliers can control the supply of particular products.
- Management culture- It is an organizational practice that helps define and maintain a business’s value in the market.
- Procurement- This resilient supply chain process helps strengthen the supply chain and makes the company capable of managing disaster risk. On the procurement side, companies identify the vulnerability caused by the disaster at tier-one suppliers.
- Operations- The company usually concentrates on different operations like the risk of financial analytics, mitigation strategies, and identifying the potential risks internally managing supply chain networks to have agile supply chains.
- Demand and visibility- Resilient Supply chains play a very important role in the manufacturing industry in identifying the demand and making the product visibility in the competitive business market. Identifying the proper demand can be managed even faster than the competitor.
Violin technologies is a leading logistics and supply chain partner, and a key market player for production needs worldwide. An efficient and adaptable supply chain resilience strategy is the best part of the survival and success of a company. Violin Technologies offers different services to enable your supply chain/manufacturing capabilities, including warehousing support, acting as an engineering staffing partner for your product development, and providing worldwide vendor consolidation and logistics support.
About the Author
Fathima Shazad belongs to the city of destiny Visakhapatnam. She is a postgraduate in Masters of business administration (HR and marketing). She started her career with a reputed MNC as a customer service executive and then got promoted as Global premier banking officer. Due to some personal reasons, she took a break from her career. Now she is back filled with enthusiasm, dedication and motivation to restart her career with Kloud portal as a creative content writer and now got an opportunity to work as a technical content writer.