Prime Advantage Blog

How to Build Resilience in Your Supply Chain

Dan Grant on Jun 7, 2016 6:30:00 AM

060316.jpegHaving a strong supply chain in today's rapidly changing and innovating marketplace is no longer enough to keep pace. A company's supply chain also needs to possess the fluidity to respond seemingly instantaneously to the unexpected that tomorrow brings. Gone are the days where merely having well-managed logistics and an advanced ERP system could set you apart from the competition. Procurement and supply chain managers now must be able to roll with disruptions as if they already had their calendars marked that the failures were coming.

According to Forbes, there are five main areas that can wreak havoc on a supply chain when they break down: Procurement and supply chain managers must have the foresight to predict any upcoming price swings. They also need to remove as many variables in the process as possible to ensure that they have command of quality. They must have proper contingencies in place when delivery times don't mimic what was scheduled. They also have to dream up every possible precaution to include in the contract so that they don't find themselves teetering on the edge of a legal battle down the road. And finally, they must adhere to a moral code that will be viewed favorably by the general public to keep their company's reputation intact.

The quicker procurement and supply chain professionals can respond appropriately to disruptions in these areas, the more resilient their supply chains will be, and the greater contribution they will make to the success of their companies.

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Industry insight drives operational cost savings

Topics: Supply Chain, Procurement

Dan Grant

Posted by Dan Grant

Daniel Grant is the President of Prime Advantage, a Chicago-based Group Purchasing Organization for mid-market manufacturers.

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