Building Resilience in Supply Chains through Technology
As the world continues to grapple with unprecedented disruptions in the supply chain, businesses must consider how better use of technology can help build resilience and reduce risk. However, according to a study by PwC, only 34% of operations leaders consider increased resilience as one of their top objectives when investing in supply chain technology. And even when they do, it’s not among their top priorities.
PwC listed five actions companies can take to improve their supply chain resilience with technology.
First, pivoting from a short-term crisis-to-crisis approach to a long-term stability plan is necessary. Determine what changes are needed in the current operations network and supply chain footprint to identify and close organizational gaps in supply chain capabilities. This approach allows long lead times to anticipate future gaps and disruptions.
Second, finding the right global-regional balance is key. Policy shifts, geopolitical risks, and market fluctuations can cause inefficiencies in the supply chain network. Assess where companies can have more geographical diversity in sourcing and distribution and insulate their operations.
Third, companies must include impairment planning in their supply chain decisions. Broader trends can impact assets in the supply chain, and anticipating these impacts can minimize the risk of wasted capital.
Fourth, building research and development and product development capacity to fuel future growth is critical. Connected products and services require new skills and capabilities in supply chains. Companies must determine which elements of their supply chain can benefit from increased investment in innovation instead of just focusing on short-term efficiency.
Finally, embracing artificial intelligence (AI) without losing the human element is crucial. AI has already improved agility and responsiveness in supply chains, but refining AI/ML strategy with the goal of leveraging both technology and team capabilities and digital upskilling will allow companies to manage supply chain risks better.
Supply chain disruptions are inevitable, but with proper technology adoption and strategies that prioritize resilience and not just efficiency, businesses can better detect, respond, and even anticipate risks. By doing so, companies can create more robust and efficient supply chains that can withstand future disruptions.
Source: https://www.dcvelocity.com/articles/57898-pwc-survey-most-companies-see-a-need-to-reduce-supply-chain-risk-but-few-invest
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