Question

Explain supply chain resiliency and why incorporating this practice is important

Answer 1

Resilience is determined by the ability to plan for disruptions, detect them early, and act quickly.

It includes three stages:

(1) a proactive plan is needed before a disruption occurs;

(2) it is oriented to minimize damage to the supply chain during disruption;

(3) it is concerned with post-disruption recovery.

Both strategic- and operational-level planning should be used during each of the three stages (proactive before disruption, reactive during the disruption, post-recovery evaluation and plan preparation for the future)

It is important as it helps in

Product and process complexity management,

•Improved upstream and downstream supply chain flexibility,

•Adjustments in global network design and

•Late stage customizations must be viewed more deliberately.