Boosting Supply Chain Resilience Through Physical Features & Strategies
Enhance supply chain resilience by understanding its key physical features like visibility, flexibility, redundancy, agility, and risk management. Learn how technologies improve visibility, ways to achieve flexibility, strategies for building redundancy, elements of agility, and proactive risk management approaches to mitigate disruptions effectively.
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Presentation Transcript
KEY PHYSICAL FEATURES OF A RESILIENT SUPPLY CHAIN The physical aspects of a resilient supply chain determine how well it can withstand disruptions and recover quickly. The key features include: Visibility Real-time tracking and monitoring. Flexibility Ability to adapt and shift resources. Redundancy Backup suppliers, safety stock, and alternate routes. Agility Quick response mechanisms. Security Protecting physical & digital assets. Sustainability Environmentally responsible operations.
VISIBILITY IN SUPPLY CHAIN RESILIENCE Definition: Supply chain visibility refers to the ability to track and monitor goods, inventory, and processes across the entire supply chain in real time. Why is Visibility Important? Identifies disruptions early Enables proactive decision-making Reduces risks of stockouts & delays Enhances supplier & customer coordination Technologies that Improve Visibility: IoT & RFID Sensors Real-time location tracking AI & Big Data Analytics Predictive insights Blockchain Secure and transparent data sharing Digital Twin Technology Simulating supply chain scenarios Example:The FASTag system introduced by the Indian government enhances visibility in transportation by reducing toll congestion and improving logistics efficiency.
FLEXIBILITY & REDUNDANCY Flexibility in Supply Chains Definition:The ability to quickly adapt to changes in demand, supply constraints, or disruptions. How to Achieve Flexibility? Multi-modal transportation (air, sea, road) Nearshoring (relocating suppliers closer to markets) Dynamic inventory allocation Redundancy in Supply Chains Definition: Having backup systems in place to absorb shocks. Ways to Build Redundancy: Dual Sourcing:Working with multiple suppliers Safety Stock: Extra inventory to prevent stockouts Alternative Distribution Centers: Multiple warehouses Example: Amul s dairy supply chain has multiple milk collection centers across India, ensuring redundancy and flexibility in case of disruptions.
AGILITY & RISK MANAGEMENT Agility in Supply Chains Definition:The ability to respond rapidly to disruptions and restore operations. Key Elements of an Agile Supply Chain: Fast decision-making with real-time data Cross-functional teams that improve coordination Demand sensing & forecasting Risk Management in Supply Chains Proactive Approach: Identifying risks before they happen Resilience Strategies: Scenario Planning: Preparing for worst-case situations Supplier Risk Assessments: Evaluating financial health & reliability Business Continuity Planning (BCP): Having backup plans for logistics, production, and sourcing Example: BigBasket increased local sourcing to mitigate supply chain risks when interstate truck movement was restricted during COVID-19.
SECURITY & SUSTAINABILITY Security in Supply Chains Types of Security Risks: Cybersecurity Threats: Data breaches, hacking of supply chain software Physical Security:Theft, counterfeiting, cargo damage Mitigation Strategies: AI-driven fraud detection Secure cloud-based systems GPS-enabled asset tracking Sustainability in Supply Chains Definition: Implementing eco-friendly and ethical supply chain practices. Sustainable Strategies: Green Logistics: Reducing carbon footprint through electric vehicles, optimized routes Circular Supply Chain: Recycling & reusing materials Ethical Sourcing: Fair trade and labor standards Example: TATA Motors has committed to achieving net-zero carbon emissions by 2045 through sustainable supply chain practices.
RELATIONSHIPS IN A RESILIENT SUPPLY CHAIN Why Are Relationships Important? A resilient supply chain relies on strong collaboration between stakeholders to maintain smooth operations. Collaboration with Suppliers & Partners Stronger supplier partnerships lead to better risk management Joint forecasting and planning to prevent bottlenecks Supplier Relationship Management (SRM) Long-term contracts to ensure reliability Regular performance evaluation of suppliers Customer Relationship Management (CRM) Proactive customer communication during disruptions Flexible return & refund policies to maintain loyalty Cross-Functional Coordination Close integration between procurement, logistics, IT, and finance teams Digital platforms that enable better coordination Example: Amazon India s I Have Space initiative partners with small shopkeepers to act as last-mile delivery hubs, improving resilience.
ROLE OF TECHNOLOGY IN STRENGTHENING RELATIONSHIPS Technology acts as the backbone of resilient supply chain relationships by improving transparency, efficiency, and collaboration. Key Technologies: Blockchain: Creates a tamper-proof supply chain ledger for transparent transactions AI & Machine Learning: Enhances demand forecasting and risk prediction Cloud-Based Collaboration:Allows real-time data sharing between suppliers, manufacturers, and distributors Example: Reliance Retail s JioMart integrates small petty shops into its supply chain through digital platforms, strengthening local retailer relationships.
