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Navigating through risks, Building Resilience

In current times, efficiency alone is not enough. Companies are also required to navigate through risks and build strong resiliency in their supply chain structure. Due to COVID’19, the risks and challenges associated with operations are now compounded.
Firms, therefore, need a fresh approach in their supply chain management which facilitates understanding vulnerabilities in the system and building a strong risk resilient structure.

It is important to have a deep view of not just your supply chain structure, but also that of your suppliers and ideally their suppliers as well. In short, you need to have a 360-degree view of your supply chain. This ensures insights to understanding the hidden relationship and the vulnerabilities associated with your suppliers for you to take actions proactively and mitigate the consequent business risks.

Getting the right supply chain management alignment across your enterprise is always a daunting task. Aside from internal hurdles, there are external factors such as changing customer demand, government regulations, natural disasters, etc which can affect your operations. However, if your structure is built on a solid foundation of resiliency and continuity, you will be able to withstand any storm.

A critical step in achieving resilience in your operations is real-time visibility and ‘transparency’:
Achieving a transparent relationship with your suppliers & their partners does not mean that every detail needs to be disclosed. However, it is important to coordinate a network planning that facilitates transparency in inventory levels, capacity etc. Your business should tackle issues in a structured way to ensure that all risks are addressed while improving resilience for future unknown threats to your organization.

A software-based solution that facilitates a real-time view of your inventory and production levels, while at the same time is able to maintain a structured data of all your suppliers will provide you a complete view of your operations. Thus, empowering you to achieving your goal of mitigating any risks and help take informed decisions proactively thus enhancing your efficiency.

Minimizing risks & mitigating through IT:

Any kind of resilience needs a risk management culture. Till the time your business is functional, you will always be vulnerable to risks. That should not stop you from investing in solutions that will enable continuity in the event of a severe threat. One critical aspect that business owners should prioritize is maintaining a strong data-centric supply chain foundation. This enables you to take tangible actions to address and quickly diffuse any immediate or long-term risks.

As businesses begin to recover from the current crisis, vulnerabilities/ threats/ unexpected shocks will continue to exist. We operate in a system that is interconnected and is dependent on the other. Hence, you will not achieve a single perfect solution for modelling your operations. Many businesses believe that building your organizations around resilience & efficiency will suppress growth. However, building a resilient supply chain & operations system that facilitates business continuity will empower you to withstand any future crisis and have a significant pay off in the long-term.

Smart business owners today have started incorporating software solutions and automation in their supply chain operations to get a comprehensive view of their operations. They use software tools for maintaining data regarding their orders, procurement, inventories, suppliers, transport etc.

In today’s VUCA world, cloud-based integration that gives you real-time visibility regarding business operations is a necessity, not a luxury. You can only improve what you see – Visibility is critical.

There are multitudes of business solutions that are provided by different service provider. Finding the right solution partner is, however, more critical than finding the right software solutions. Your solution partner should be quick to identify the specific needs that your business requires and deliver solutions that build resilience and facilitate continuity.

worxpertise offers your business agile solutions that are tailored around your organizational requirements. Our team of experts works with you and your business to understand your specific needs. We offer you the services of our trained professional to take care of your orders, inventory, production, purchase and many other day-to-day activities of your business. At worxpertise, we design and operate solutions that mitigate your business risks due to supply chain operations.

Ask now for a meeting with our supply chain expert by writing to smart.solutions@worxpertise.com or calling +91 124-685-9200.

Reference:
https://www.mckinsey.com/business-functions/operations/our-insights/is-your-supply-chain-risk-blind-or-risk-resilient