What do you do if your supply chain faces disruptions in the future?

As we are all well aware, as Transportation Management professionals, our particular industry/domain is one fraught with various risks including traffic risks, environmental risks, truck acccidents etc. Besides these, there are other risks & disruptions due to which deliveries & dispatches could be thrown off. Due to these disruptions, a comprehensive risk mitigation plan is crucial. How would you prepare yourself for future disruptions, no matter what they are? Based upon my knowledge & experience, the following are areas that would require risk assessment:- - Identify critical suppliers as well as transportation routes. - Identify logistical nodes that could get hit by natural disasters, political unrest or economic fluctuations.

1. Identify the root cause: Quickly determine the source of the disruption, whether it's due to natural disasters, political instability, or other factors. 2. Assess impact: Evaluate how severely the disruption is affecting different aspects of the supply chain, such as production, transportation, and distribution. 3. Develop contingency plans: Create backup strategies to address the disruption, such as alternative sourcing options, rerouting shipments, or utilizing buffer inventory. 4. Communicate proactively: Keep all stakeholders informed about the situation and any changes to the supply chain operations, including suppliers, customers, and internal teams. 5. Collaborate with partners: Work closely with supply chain ..

To prepare for future disruptions in the supply chain, I would implement several proactive measures. First, I would diversify the supplier base to reduce reliance on single sources. Next, I would invest in technology like predictive analytics and real-time tracking to anticipate and mitigate potential disruptions. Additionally, establishing strong relationships with suppliers and logistics partners can facilitate open communication and collaborative problem-solving in times of crisis. Finally, I would develop contingency plans and conduct regular risk assessments to identify vulnerabilities and implement appropriate mitigation strategies.

I would advice to build in flexibility in your supply chain and prepare a strong BCP. With a strong risk assessment, to deal with the vulnerabilities that have the most potential impact. Invest in technology and automation. Keep watch on what the data is predicting and adopt to it before it happens. Visibility is key to be in control.

As Managing Director of Defence Production Unit & as CEO of MRO facility with exceptional turnaround success, it was the 'Redundancy & Surety of Redundancy' was a important factor post Risk Assessment. I had peculiar challenge of erratic requirement owing to nature of demand. My Unit had suppliers from all over India as well as from foreign countries. Supplier base was also diverse, ranging from private players, industries, government agencies & PSUs. Managing it was a huge challenge but risk assessment & the steps undertaken paid off. Here's how: - Redundancy of supplier & surety of MOQ. - Constant conversation. - Unambiguous formulation of qualitative requirement. - Minimal time lag in placing orders & advance information.

As a logistician if you don’t work on BCPs, you are bound to get into problems.. you should have your recovery plan ready for every shipment to safe guard your logistics

Forsee what others can't see ...its pure experience and nobody can replace experience , so apart from working on BCP , it's always good to test your controls and keep challenging them. Supply chain professional needs to work on localization and various means of flexible contracts to stay ahead in this game of VUCA world

Building Flexibility ...surely disruption has taught us enough to work on reliability and flexibility in every aspect of SC, trust still we haven't given enough footage and weightage to the supplier's own supplier's and their supply chain modelling , capability , BCP and assurance program, by all means this is one level up and now the time has come for smart SC managers and professional to get into this space, leaving no stone unturn for building 360 degree of flexibility.

Agility and flexibility plays a critical role in making any organisational supply chain resilient . Key things to manage your supply chain disruption is to understand your nature of business and features your competitors are offering to customers. Improve your product services and strategies your upstream and downstream supply models to meet your supply chain needs .

Building flexibility in your Supply Chains is key to surviving disruptions & coming out as a sustainable business. Certain points wherein flexibility would be required are mentioned below:- - Build up your Supplier Sources - Diversify your Transportation Modes - Put some systemic mechanism in place wherein items can be supplied from different sources including other plants in your own Company Codes. - Multimodal Transportation - Flexible Contracts with your Suppliers/Logistics Providers.

Leveraging Technology is the best way to manage disruptions in your Supply Chain. Technology is an excellent "friend" whilst your organization is planning various risk mitigation & solutions to combat disruptions. Current technology has all of the facilities to simulate any scenario that could disrupt your Supply Chain - from natural disasters to worldwide pandemics. With this pre-emptive knowledge, the organization can strategize & publish a detailed, comprehensive risk mitigation plan to counter disruptions. With a comprehensive risk mitigation plan, the organization would be safe from disruptions.

Technology has its own place. But, human interactions & relationships also have their own importance. If we develop strong professional relationships with our Suppliers/Logistics Service Providers, they would be the ultimate solution to countering Supply Chain disruptions. How? Seamless as well as regular collaboration & communication with them will allow our organization to develop a solution - online or offline - that would help our dispatches reach the end customers with minimal delays. Trust built with the Suppliers/Logistics Providers could help both the partners come up with an optimal solution that would be mutually beneficial.

Supply Chain disruptions not only include transportation or environmental aspects, they also include inventory in the warehouses. If, all of a sudden, there is a demand spike & that product is solely being stored/manufactured/produced in our warehouse, how can we ensure that the supply is always available without shortages? Here, inventory management comes into the picture. The in-demand product needs to have enough buffer inventory & safety stock so that there is the least amount of shortage. So, enough safety stock is one option. The other option is JIT (Just-In-Time) inventory. This will most likely reduce excess stocks along with their corresponding costs. But, you need to have a clear understanding of your Supply Chain.

Encourage an organizational culture that values ongoing learning and adaptation so that future resilience can be enhanced by applying the knowledge gained from previous disruptions. Review and update risk management plans, business continuity strategies, and crisis response procedures on a regular basis in light of evolving best practices, new risks, and shifting market conditions.

You need to have dovetailed mitigation measures well into your plan.We need to look towards a Viable Supply Chain model ; a Resilient model alone won't do. While a resilient model will cater to disruptions,it will take longer to recover.A technologically adept Viable model will withstand crisis situations and recover faster !