When crises occur, a company’s ability to weather the storm usually is determined by several factors, but at least for product based companies, none is more important than the resilience of the supply chain. During these times, operation excellence, that is, the ability of the organization to execute, is important, but it usually won’t be enough to avoid disaster. True resiliency comes from careful planning, a deliberate effort to build flexibility into all of the major factors of the supply chain. Because the interactions between the various parts of the chain can change dramatically when crisis hits, it’s imperative that the supply chain is evaluated as an end to end system, not as individual components, using what’s sometimes known as system thinking. In many cases, it’s important to evaluate how the supply chain interacts with other parts of the business, as well as outside socioeconomic and political systems.
- A resilient supply chain begins with a well though out supply chain design
- The design should be based on an end to end view, not based on what’s best for individual components
- Thinking of the supply chain as a system, operating within the overall business