Resilience is the new must-have across the global supply chain. Resilience is the ability to proactively respond to supply chain disruptions and challenges, and it is a characteristic whose importance was most recently highlighted by labor issues along the U.S. East and Gulf Coasts.
How does an organization go about developing supply chain resilience? It starts with technology.
This week’s roundup of headlines from across the supply chain and logistic landscape looks at the challenges currently demanding resilience — and the tools, technologies, and strategies LSPs and BCOs are using to overcome them. Continue reading to learn more, and contact us to discover how the Cargologik platform empowers your organization to be more resilient.
Rolls-Royce Take on Supply Chain Challenges
Rolls-Royce is just one of the international companies seeking resilience in response to ongoing supply chain issues that have led to an engine shortage and even the suspension of some British Airways routes. Rolls-Royce’s actions include integrating its supplier and procurement management teams for greater efficiency, using its own raw material stock to overcome shortages, and sending its own team members to work and build collaboration with supplier organizations. Time will tell how these actions support a more reliable and streamlined supply chain, but it’s clear that Rolls-Royce is not simply waiting around for a return to normalcy.
Geopolitical tensions are creating similar issues across the textile and fashion supply chain, forcing organizations in the industry to take similar action to build resilience. No industry is immune from supply chain challenges in the modern era, making it essential that all organizations strive to build resilience.
Starting Point: Anticipate Supply Chain Risks to Come
A big part of building resilience is understanding coming risks — and working to overcome them before they arrive.
For example, deforestation regulations could significantly impact the supply chain operations of some businesses. Similarly, climate change could affect how goods and products (including raw materials and natural resources) move around the world. Starbucks is “ramping up” its supply chain investments to guard against climate change, demonstrating how some organizations are working to get ahead of future challenges.
In years past, companies may have survived by waiting for supply chain disruptions or crises and then building out a plan after they arrive. But that’s no longer the case. Resilience means being proactive about preparing for regulations and otherwise thinking through risks that may emerge in the future. Organizations that can effectively build resilience will also be poised to gain a competitive advantage and facilitate outstanding customer experiences.
Tech-Enabled Visibility is a Non-Negotiable
Another key to building resilience? Tech-enabled visibility. Supply & Demand Chain Executive writes about how the evolution of the market for electric vehicles demands real-time visibility so that companies can “navigate current challenges and position themselves for long-term success.” This need for visibility isn’t limited to just the EV market. Visibility (and the tech platforms that enable it) will be a key to the supply chain success of organizations across different industries now and in the future.
This Peak Season’s ‘Perfect Storm’
Businesses that experience peak season are facing a “perfect storm” of supply chain challenges during their busiest time of the year. This article suggests that visibility, effective inventory management, and resilience will be the keys to stepping through this perfect storm, keeping supply chain operations moving forward, and maximizing revenue during this pivotal time of year.
Any organization driven by a peak season should try to secure technology, establish visibility, and build resilience well before demand spikes. These actions can reduce supply chain risk around peak periods.
Riding the Nearshoring Wave
We’ve written previously about different businesses reducing their reliance on China and, in some cases, nearshoring to manufacturing hubs much closer to markets to reduce supply chain risk. The Wall Street Journal writes about how U.S. drugmakers are “breaking up with” their Chinese suppliers, indicating this trend's continuation.
If the nearshoring trend persists, it could reshape the global supply chain over time. The right orchestration platform can help LSPs and BCOs better assess their supply chains, make the best decisions for the future, and build the resilience that will be essential to long-term success.
A Platform for Today’s Supply Chain Challenges
At Cargologik, we’ve built a supply chain orchestration platform that eliminates fragmentation while handling everything from visibility to document management. If you’re one of the many LSPs or BCOs searching for solutions in today’s chaotic, volatile supply chain landscape, our single-source-of-truth platform offers solutions. Get started now.
