4 success factors for robust supply chains

Geopolitical crises, rising inflation and the global shortage of skilled workers are leading to disruptions in supply chains. The effects of these bottlenecks are not only felt by end consumers. The entire logistics sector, suppliers and companies waiting in vain for their goods are under enormous pressure. It takes a resilient strategy to avoid getting into such a predicament in the first place. Read about the current trends in supply chain management, the importance of resilience, and the most effective measures to ensure stronger supply chains in the blog below.

Companies focus on resilient strategies

In light of global crises and social changes, companies have become much more sensitive to issues relating to the stability and security of supply chains. In a study conducted by the Herchenbach Supply Chain Institute, 76% of the companies surveyed in Germany, France and the UK stated that they were convinced of the effectiveness of regular stress tests. Another 50% of companies stated that they were already developing strategies to secure their supply chains.

Companies' awareness of the relevance of resilient supply chains has increased and they are willing to take appropriate measures. But what does resilience actually mean and how do I achieve more resilient supply chains?

Definition of resilience

The ability to withstand difficult situations without lasting impairment.

Resilience, in the context of supply chains, means that they are designed to be stable and resistant in the face of crises and unexpected changes. This means that risks are eliminated preventively. Disruptions or interruptions in the supply chain can also be cushioned reactively and the negative effects can be limited.

Top measures for more resilience

Suppliers, companies, and supply chain managers are taking precautions to cushion unexpected changes in supply chains. In the study by the Herchenbach Supply Chain Institute, 320 decision-makers from key industries with a focus on transportation and logistics were asked what measures they are taking to increase resilience. The chart shows the top measures per phase or actor along the supply chain.

A closer look at these measures reveals patterns. These patterns indicate generally applicable principles that can help to strengthen resilience in companies.

4 success factors for resilient supply chains

The resilience of supply chains is based on several fundamental principles. If these are followed, they will help to successfully strengthen resilience in both your own company and your supply chains.

1. ‍Predictability and avoidance of disruptions: Good supply chain management requires not only quick responses to operational disruptions, but also the ability to predict and avoid them. Strategic planning synchronizes all components of the supply chain for greater transparency and flexibility, allowing companies to better anticipate and limit problems.
2. Diversification of suppliers and production partners: Resilient supply chains rely on the diversification of suppliers and production partners to minimize disruptions in a region. Blockchain, sensors, and advanced analytics enable supply chain managers to monitor complex partnerships and manage supplier contracts in remote regions.
3. Implementation of capacity and inventory buffers: Switching from "just in time" to "just in case" production processes is crucial to be prepared for unexpected disruptions. Digital supply chain technologies support demand-led manufacturing, virtual inventories and predictive demand forecasting to remain resilient in turbulent times.
4. Utilization of data and technologies: The analysis of big data using artificial intelligence and machine learning makes it possible to identify trends and potential and to automate and optimize work processes. The use of data and technologies forms the fundamental basis for increasing resilience. Suitable tools help companies to take the right measures to strengthen their own supply chain, monitor it in real time and mitigate bottlenecks in advance.

Supply chain transformation with process mining

With mpmX, highly complex processes can be analyzed based on facts and data in order to uncover bottlenecks and their causes. How does this work? Put simply, by integrating mpmX into your company's existing IT systems, using the data to make the hidden visible, and displaying the supply chain processes as they actually run in clear dashboards. The extensive analysis options provide users with a reliable basis for making well-founded decisions to optimize and automate their processes and thus increase the efficiency of the supply chain.