Supply chain resiliency

Extracted Attributes

• Benefits

  Proactive navigation of challenges, seizing opportunities, long-term cost savings, reduced inefficiencies, minimized financial impact of disruptions, enhanced customer satisfaction.

• Challenges

  Diminished state capacity, need for permitting reform, difficulty in achieving transparency, cost of diversifying supplier base, cost of maintaining safety stocks.

• Definition

  The capacity of a supply chain to persist, adapt, or transform in the face of change, and its ability to anticipate, adapt and recover from disruptions.

• Core Objective

  Securing a nation's ability to produce critical goods.

• Strategic Importance

  A strategic imperative, especially in response to aggressive tariff policies and global uncertainties.

• Key Pillars/Components

  Contingency, Flexibility, Visibility, Collaboration.

• Critical Sectors Identified

  AI/Semiconductors, Energy, Rare earth minerals, Pharmaceuticals.

Timeline

• The concept of supply chain resiliency was debated on the All-In Podcast, framed as a strategic imperative in the context of aggressive tariff policies and the need to secure America's ability to produce critical goods. (Source: Related document)

  XXXX-XX-XX

• The US Department of Defense unveiled its National Defense Industrial Strategy, prioritizing the development of resilient supply chains for defense applications. (Source: Web search results (Deloitte))

  2024-01-XX

• Between 2022 and 2023, 86.2% of respondents in the National Association of Manufacturers (NAM) Manufacturers’ Outlook Survey for Q4 2023 reported working to de-risk their supply chains. (Source: Web search results (Deloitte))

  2022-XX-XX

• As of early 2024, global supply chain pressures fell from the unprecedented levels experienced following the COVID-19 pandemic. (Source: Web search results (Deloitte))

  2024-XX-XX

Supply chain resilience

Supply chain resilience is "the capacity of a supply chain to persist, adapt, or transform in the face of change".

Web Search Results

• What Is Supply Chain Resilience? - IBM

  # What is supply chain resilience? ## Author Writer Editorial Content Lead Innovation and Strategy Director IBM Sterling ## What is supply chain resilience? Supply chain resilience refers to a supply chain's ability to anticipate, adapt and recover from disruptions, such as natural disasters, pandemics or other unexpected events. [...] Resilient supply chains maintain continuity by minimizing the impact of disruptions and ensuring customer satisfaction. Key pillars of supply chain resilience include contingency, flexibility, visibility and collaboration. These pillars allow businesses to address vulnerabilities and adapt quickly to evolving circumstances. [...] Resilient supply chains typically exhibit four core components: contingency, flexibility, visibility and collaboration. Contingency involves establishing backup processes and maintaining extra inventory to ensure business continuity during disruptions. Flexibility allows businesses to quickly adjust their supply chain operations to accommodate the unexpected. Visibility is crucial for identifying and addressing potential disruptions.

• 8 Benefits of Resilient Supply Chains - Thread In Motion

  The agility fostered by resilient supply chains transcends mere adaptability. It empowers businesses to navigate challenges proactively and seize opportunities with finesse. The ability to swiftly realign resources and processes according to shifting market dynamics is a hallmark of supply chain resilience. [...] While building supply chain resilience requires initial investments, the long-term cost savings are substantial. Resilient supply chains streamline processes, reduce inefficiencies, and minimize the financial impact of disruptions. [...] In an era characterized by uncertainty and rapid change, the significance of resilient supply chains cannot be overstated. The benefits outlined in this article demonstrate that investing in supply chain resilience is not merely a proactive measure but a strategic imperative. By building a resilient supply chain, businesses can safeguard their operations, enhance customer satisfaction, and position themselves for growth in an ever-evolving global marketplace.

• Supply chains: To build resilience, manage proactively - McKinsey

  Source: McKinsey Resilient Operations Center In this stage, three actions can be critical to building resilient supply chains: creating a nerve center for the supply chain, simulating and planning for extreme disruptions, and reevaluating just-in-time strategies. [...] After experiencing significant supply chain disruptions from COVID-19, a global telecom company focused on going beyond building up inventory. In its efforts to develop end-to-end supply chain resilience, two areas took priority: changing supplier contracts to ensure maximum agility and transparency, and reducing the share of components sourced from any single supplier. The company already had dual suppliers for components but decided to go a step further by adding a production model using two [...] CEOs and other top executives may focus on quick responses during a crisis but may also need to consider the difficult concern of building longer-term resilience. Transparency may be hard to attain. Diversifying the supplier base, though critical for resilience, is expensive. And the cost of keeping safety stocks on hand may be hard to justify if they are not used in several years. These issues are real and can make the task of building resilience in supply chains feel like wading through

• Supply chain resilience | Deloitte Insights

  In January 2024, the US Department of Defense unveiled its National Defense Industrial Strategy. One priority of this strategy is the development of resilient supply chains enabling the nation to securely acquire products, services, and technologies for defense applications. Such government strategies can facilitate the restructuring of supply chains to meet both current and future needs at speed, scale, and cost.24 [...] As of early 2024, supply chain pressures have fallen from the unprecedented levels following the COVID-19 pandemic.1 The National Association of Manufacturers (NAM) Manufacturers’ Outlook Survey for fourth quarter of 2023 revealed that, in the last two years, 86.2% of respondents have worked to de-risk their supply chains.2 Many companies are now prioritizing a resilient yet efficient supply chain. They are working to optimize the balance between performance and cost by restructuring their [...] In the last four years, global industrial manufacturing and construction supply chains have experienced significant disruptions while being exposed to limited supplier options and intensifying competition. For many industrial manufacturers, the response of the supply network to the COVID-19 pandemic, geopolitical challenges, and natural disasters thrust supply chain resilience into the limelight. But the pendulum appears to be swinging back, with costs and margin pressures once again at the

• Building Resilient Supply Chains: Strategies and Successes for ...

  components. By having strong relationships with multiple suppliers, manufacturers can reduce dependence on a single source and better navigate disruptions. [...] Manufacturing is a fast-paced, constantly evolving, and dynamic environment, and the supply chain is at its heart. For small and medium-sized manufacturers (SMMs), navigating the complexities of the supply chain often feels like a high-stakes balancing act. From balancing fluctuating material costs and delivery delays, to shifting market demands, it’s not always easy to maintain smooth operations. Yet, within these challenges lie potential opportunities to build resilience, innovate, and fuel [...] In today’s interconnected world, supply chain challenges are an inevitable part of doing business. For small and medium-sized manufacturers, these challenges can feel overwhelming, but with the right strategies and the support of MEP Centers, these challenges can be transformed into opportunities for innovation, efficiency, and growth.