Supply Chain Resilience

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What Is Supply Chain Resilience?- Definition 

Supply chain resilience is defined by its capacity for resistance and recovery. That means having the capability to resist or even avoid the impact of a supply chain disruption – and the ability to recover from a disruption quickly. 

The ability of a supply chain network to resist disruption and limit the effects of upheaval on revenues, expenses, and consumers is known as supply chain resilience. Resilient supply chains not only assist businesses in responding quickly and effectively to significant economic, technological, and market changes, but they also assist businesses in gaining a competitive advantage.

Supply Chain Resilience

Multiple areas of the supply chain are vulnerable to operational risk and disruption. As we saw with COVID-19, worldwide disasters can have a far-reaching, global impact on supply chain logistics, suppliers, and workforces. Unexpected competition, unanticipated market movements, or even rapid changes in client shopping behavior can all cause supply chain disruptions. Supply chain resilience is becoming a competitive differentiator, but it necessitates a paradigm shift in collaboration. Partners must work together to develop an ecosystem that allows them to interact and exchange information more quickly and make better choices and judgments. Finally, supply chains must be transparent to promote real development and achieve true resilience.

Top Three Benefits of a Resilient Supply Chain

Finding a successful balance between supply and demand in an increasingly competitive market is a significant issue for any supply chain manager. Many organizations have recently discovered the true cost of cutting costs on diversity, supply chain innovations, and other resilience measures. However, there are numerous potential business benefits when organizations invest in diversification, supply chain innovations, and other resilience measures, including:  

  • More efficient processes: Greater resilience frequently means less risk and more room to invest in growth and innovation. Companies that prioritized supply chain resilience had up to 60% quicker product development cycles and were able to boost their output capacity by up to 25%, according to a 2020 global business analysis by Bain and Company.
  • Enhanced productivity: Resilient supply chain solutions contribute to an increase in overall system productivity. According to a McKinsey 2020 survey, supply chain leaders from around the world report increased productivity as a result of resilient supply chain systems, and 93% of those surveyed plan to prioritize resilient supply chain strategies for investment in the following year.
  • Risk reduction: In many businesses, supply chain operations are the most vulnerable to risk and loss. Supply chains are global in scope and complicated in operation by their very nature. As a result, they are particularly vulnerable. Resilient supply chain systems reduce risk by giving organizations real-time visibility into all operations across their network, allowing them to optimize and adjust their processes and logistics.


Will your company be able to meet the challenge of disruption, or will it be on the verge of collapse? Is Your Supply Chain Resilient? Supply chain resilience is a time-consuming and challenging process, but it is entirely possible for organizations willing to invest in the necessary technology, methodologies, and cultural changes. Prioritize supply chain resilience, and make sure your company is prepared to survive any unforeseen circumstances.

Explore Additional Resources To Know More

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