Building up supply chain resilience

The last few years have been marked by numerous supply chain disruptions that still pose extreme challenges for supply chain managers. The disastrous flood in Germany in 2021, the Russia-Ukraine conflict and the tsunami in Japan in 2011 are just a few examples. Such events occur unpredictably and with short-term effects, sometimes completely shutting down individual nodes in delivery networks for an indefinite period. This increases the degree of uncertainty as to where suppliers, warehouses or production facilities should be located in the future.

Other events are separated from location decisions but can also lead to significant problems in supply chains. These can include major economic downturns in certain core markets, which leads to sudden demand reductions, or the blockade of logistical hubs like the Suez Canal, which lead to immediate interruptions of deliveries.

The framework conditions in the supply chain area have changed and a further increase in complexity is predicted. Global networks are limited to a few sources of supply at various points, especially when it comes to critical raw materials. Climate change is leading to an increase in extreme weather events, and the number of cyberattacks has risen rapidly in recent years – with no prospect of change.

Companies must adapt to this new normal scenario. In this context, supply chain resilience is often cited as an answer.

Learn in this e-book what exactly is behind the buzzword, and how a resilient supply chain can be achieved?