Building a resilient supply chain when disruption is the new normal

Pandemics, extreme weather, shipping bottlenecks, cyber attacks and geopolitical shocks have shown how fragile global supply chains can be. For organisations that depend on imported equipment and spares, disruption is not a rare event to be ignored, but a recurring risk to be managed.

How often does disruption happen?

In its 2020 research Risk, resilience, and rebalancing in global value chains, the McKinsey Global Institute found that supply chain disruptions lasting a month or longer now occur, on average, every 3.7 years. Over a decade, the cumulative cost of such events can erase a large part of a year's profits.

Seven practical steps to resilience

1. Map your critical items. Identify the parts and materials whose absence would stop operations, and understand where they come from, including sub-suppliers.
2. Diversify sources. Qualify alternative suppliers and equivalent products for critical items before you need them.
3. Hold the right buffers. Combine just-in-time efficiency for routine items with safety stock or consignment stock for critical and long-lead items.
4. Plan logistics options. Agree alternative routes, ports and freight modes, and use clear Incoterms 2020 terms in contracts.
5. Check quality at source. Pre-shipment inspection and factory audits prevent costly surprises on arrival.
6. Digitise visibility. ERP integration, vendor portals and barcode or RFID inventory systems give early warning of delays and shortages.
7. Secure the chain. Standards such as ISO 28000 help manage security risks across suppliers, transport and storage.

When outsourcing makes sense

Building this capability in house takes people, systems and supplier relationships that many organisations do not have. Outsourcing supply chain management to a specialist partner can bring immediate access to qualified suppliers, logistics networks, inspection capacity and digital tools, while your own teams focus on their core mission.

How Optimity Global helps

Our End-to-End Supply Chain Outsourcing service covers strategic sourcing and vendor management, procurement and inventory planning, order fulfilment and logistics, warehousing and distribution, quality inspection, trade compliance and supply chain digitisation for aviation, telecom, infrastructure and corporate clients.