3 innovation practices to beat supply chain disruption Skip to main content

3 innovative practices to beat supply chain disruption

September 13, 2022

Supply chain disruption, either due to natural calamities or any unanticipated event, has a strong impact on production and global industrial trade. One of the greatest disruptions took place globally with the onset of COVID-19.  

Supply chains all over the world have been disrupted and tested, in terms of agility, scalability, and resiliency. The way a company responds to the disruption and handles the situation is a clear indicator of a company’s capability to drive sustainable business growth in the long run.  

This blog breaks down 3 supply chain disruption drivers and three strategies to effectively address them for sustainable business and economic growth. 

Understanding supply chain disruption  

Simply put, supply chain disruption refers to any kind of disturbance in the manufacturing, supply, and delivery of products to customers. This kind of breakdown is usually triggered by certain complications in the supply chain fabric such as a shift in product demand, certain structural factors, or scarcity in the talent market.  

With unprecedented events like COVID-19 and the unfavourable conditions in Ukraine, the supply chain across the globe has taken several blows. Bottlenecks in transportation, insurgency in consumer demand, and scarcity in the talent market all contribute to supply chain disruption in the long run. 

Supply chain disruption is highly likely when there is a lack and excessive hoarding of material supplies. The compactness of consumer goods is a key driver of global supply chain disruption. For instance, some countries have an abundance of certain minerals and ores while others are critical suppliers of agricultural and industrial products.  

Logistics breakdowns happen when there is a constant lack of safe trade routes or there are bottlenecks in transportation. As a result, input shortages start to impact the cost of goods and the economy eventually starts to inflate. Lockdown due to pandemic-led restrictions was a key driver of these kinds of logistics loopholes.  

Labour shortages also result in supply chain disruption alongside the right acquisition of great talent. While businesses continue to battle supply chain disruption across all fronts, they need to initiate strategies that promote, encourage, and hone talent in the youth.  

Strategies that amplify your supply chain  

Over time, an organization’s supply chain will have to advance at a pace with which it could match its competitors and the rest of the world, in terms of agility. Immediate action should be taken in order to counter any hurdles within the supply chain so the product can smoothly reach its end consumers.  

A business looking to contribute to the global supply chain should be able to overcome any barrier between the seller and customer. Especially today, employees hired should possess skills in countering short-scale problems which require an instant solution.  

We list three mechanisms that help businesses tackle supply chain disruption and help accelerate business agility.  

        1. Contributing to commercial growth 

As many as 42% of Chief Supply Chain Officers (CSCOs) are striving to achieve sustainability and profitability margins, as per experts at Gartner in a 2021 survey on the future of supply chains. While organizations believe value-driven growth is a strategic business priority, they often tend to prioritize operational excellence over value creation.  

To drive commercial innovation, supply chain leaders must balance investments and create better capabilities that help them connect with the customer. Subsequently, using these insights can help them deliver supply-chain-specific services that can yield a greater connection with customers, ultimately leading to greater profits.   

      2. Delivering on your crucial social responsibilities 

Social sustainability and environmental factors are important to address supply chain disruption. That is why 67% of organizations have included these in their key performance indicators for value-driven growth. Customers and governments alike are compelling supply chain leaders to invest more in social and environmental commitments, diversity, equity, and inclusion (DEI).  

To effectively meet these obligations and create an impact on the supply chain, businesses are starting to practice transparency and visibility. In this regard, CSCOs need to play their part in establishing processes that help suppliers incorporate sustainable technology to authentically deliver on their commitments.   

       3. Accelerating the supply chain execution  

With the world moving forward at an unparalleled pace, supply chain leaders are expected to participate in accurate and informed decision-making. To enable real-time supply chain execution, supply chain organizations need to quickly mature their data capabilities.  

Companies can extract data-driven analytics from real-time data, which in turn helps them implement real-time decision-making. To achieve end-to-end automated execution and to effectively address supply chain disruption, you need to nurture supply chain talent and develop capabilities to act on insights in real-time.  

Turning the tide with supply chain reinforcement  

The past few years have shown us that agile and effective supply chains are key drivers for the economy. They are also essential for organizations to stay in the supply chain competition. Organizations need to play a key role to limit the impact of supply chain disruption by bringing forth a foundational reinvention that fortifies the global supply chain in the long run.  

Regularly contributing to commercial growth, meeting social and environmental responsibilities, and developing and implementing agile processes to accelerate supply chain operations are significant for CSCOs in realizing the true value of supply chain reinforcement.  

Interested in knowing how we fortified supply chain operations for a global fashion chain? Read the case study or contact us to start your transformation journey today!