--- title: Building Supply Chain resiliency to disruptions description: Is your business resilient enough of coping current disrupting crisis? image: https://blog.prophetic-technology.com/hubfs/ross-findon-mG28olYFgHI-unsplash.jpg --- [hello@psdtohubspot.com](mailTo:hello@psdtohubspot.com) [+91 8874569874](tel:+91%208874569874) Hours : Opens 10:00 AM To 07:00 PM [![logoHD](https://blog.prophetic-technology.com/hs-fs/hubfs/logoHD.jpg?width=2500&name=logoHD.jpg "logoHD")](https://www.prophetic-technology.com/) - [Home](https://www.prophetic-technology.com/home) - [Subscribe](https://www.prophetic-technology.com/pt-blog-subscribe-opt-in-consent?hsCtaTracking=174cc371-9cdc-4b94-a32e-9007f0ac4dea%7C0776642c-2604-4695-8e3f-f7a74f10031a) - [Contact Us](https://www.prophetic-technology.com/contact-us-old) - [supply chain](https://blog.prophetic-technology.com/topic/supply-chain) - [disruption](https://blog.prophetic-technology.com/topic/disruption) # [Building Supply Chain resiliency to disruptions](https://blog.prophetic-technology.com/building-supply-chain-resiliency-to-disruptions) The Supply Chain (SC) is becoming crucial to the increase of corporations competitiveness. The curre... [Read More →](https://blog.prophetic-technology.com/building-supply-chain-resiliency-to-disruptions) - [supply chain (286)](https://blog.prophetic-technology.com/topic/supply-chain) - [technology (138)](https://blog.prophetic-technology.com/topic/technology) - [logistics (81)](https://blog.prophetic-technology.com/topic/logistics) - [procurement (69)](https://blog.prophetic-technology.com/topic/procurement) - [optimisation (65)](https://blog.prophetic-technology.com/topic/optimisation) Posted by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) on Jun 8, 2020 8:22:44 PM ![Dave Food](https://app.hubspot.com/settings/avatar/9fa060d35f0f962fafafe972c24035ae) Find me on: [Facebook](https://www.facebook.com/davefood) [LinkedIn](https://www.linkedin.com/in/davefood) [Twitter](https://www.twitter.com/davefood) The Supply Chain (**SC**) is becoming crucial to the increase of corporations competitiveness. The current-increasingly-global economic environment demonstrates that businesses could better compete if they act in collaborative Supply chains (**SCs**). **How do we create highly-efficient SCS?** ·       Through improving confidence in the **SC**. ·       By conferring your **SC** the ability to be resilient. ·       The implementation of edge-management *strategies, policies* and *practices* to enhance *effectiveness*. ·       To understand the *interrelationshi*p and i*nterdependency* among enterprises in a global **SC**. ·       Reducing operating costs (e.g. lean manufacturing, strategic inventory, reduced-product lifecycle, Just-In-Time strategics, and outsourcing. ·       Although these new ways of managing bring in attractive business benefits, they reduce the existing-dynamic to face ambiguous events. ·       Advocate the business globalisation increasing extensive networks. **SCs** are exposed to [numerous-constantly-evolving risks](https://warwick.ac.uk/fac/sci/wmg/research/scip/) either coming from indoor/outdoor the company. *Getting around* such risks *or diminishing* their adverse effects is a **CEO** management challenge at present. For a strong **SC**, it must build up *resilience capabilities* to react to the *damaging-unexpected* consequences of events and to *quickly recover* to its *original state* and go further towards a new-best state of functions, as competently as possible. **How is it valuable to quantify our company resiliency?** The measurement of **SC** resilience has not been attempted much. To fill this gap, we can generate a quantitative guide to assess the **SC resilience** designed for each **SC** in our business. Begin by *defining* and *deliberating* fundamental models in the range of **SC** management, such as *potential risks, their sources* and their *consequences*. There is always the possibility that several risks happen, each with different characteristics and various-adverse effects both to the **SC** and the *enterprise*. Therefore, there are some strategies you can use to *lessen the adverse* *consequences* of risk on a **SC** whilst *making it more* **resilient**. The resilience index of a **SC** to risk is determined by *combining* the resilience index of companies that encompassed your **SC**. The [**SC** **resilience**](https://www.toolsgroup.com/resources/) could be determined by a *case study* developed when the **SC** was previously *disrupted* due to *another risk event*. For instance, the transportation disruption of material among several suppliers. In each scenario, the *resilience indexes* of each company are the *relative ability* of the company to *satisfy the customer*. The *fulfilment level* is a performing degree of the *order fulfilment*, put across as a proportion of the *total order*. In the end, the *resilience index* of the **SC** works out influenced by the method put into practice and then analysed. The exponential expansion of the **COVID-19** and China *essential role* in the global **SC** make it *urgent* to consider these adverse circumstances affecting our businesses, such as: ·       The importance of *the breaking of leases, cash flow issues* and *staff layoffs*.  ·       *Suspension* or *termination* *of contracts* for *raw materials*. ·       *Suspension of production* deeply affecting our manufacturing processes. ·       The *failure or delay in supplying goods or components*. ·       The possibility *of no payment of loans*, or emerging *appeals for guarantees*. ·       *Cancellation* or *restrictions* on *travel arrangements*, striking the *hospitality* industry. ·       Postponement or revocation *of organised-events* like cruises, concerts, and sports. ·       The closing of *restaurants, cinemas, theme parks* and *hotels*. ·       The shutting down of *malls* and *retail shops* to the public. ·       The possible disagreements relating *insurance-coverage* for *business interruption.*   ***What measures to implement to diminish loss?***   ·       There are tools you can use to *quantify the* ***resilience*** *of your enterprise* **SC***.* ·       Ponder if these *difficulties* and *failure to perform* are caused by the *burst of disruptive* events or the *actions to constraint them; keep a record-proof.* ·       To alert *shareholders on time about the existing-difficulties* and *inability to perform*. ·       Take the necessary steps accordingly and *provide evidence* of those *steps taken*.  ·       Take note of *current regulatory-laws, legal stances* under various *governing-laws*; must laws do not tolerate *cessation, interruption* or *postponement* of contractual *rights* and *obligations. *   **Further recommen*dations****: share in-time with interested-party* (including employees, shareholders, financiers, and significant authorities) on *possible-arising complications* to safeguard the continuation of collaboration. The implementation of mitigating-strategies supports the manager in improving the decision-making processes and enhance better **resilient SC** to a risk. *Is your business* **resilient** *enough of coping current* disrupting crisis*?* **Dave Food** [Prophetic Technology](https://www.prophetic-technology.com/) **Subscribe to our emails & exclusive free content.** **[I want to subscribe](https://blog.prophetic-technology.com/cs/c/?cta_guid=0776642c-2604-4695-8e3f-f7a74f10031a&placement_guid=174cc371-9cdc-4b94-a32e-9007f0ac4dea&portal_id=2979069&canon=https%3A%2F%2Fblog.prophetic-technology.com%2Fdo-actual-jobs-equally-benefit-all-workers&redirect_url=APefjpF4Sxc7gEmul7z5-wU89eRH74m7Gjnq4lCre8tXiHEl4ZE9pKrFRvRW9l6Am6-q6DEvB590rMVCeeRffRZLcVE_gv8ri9Tl2d6Md72UH8pi7uhATO-yPVzgAeatsdNS9zB6oRX6V8snQhVUpAXUUKgPk2-8IRPKfu-bbqdKAf_ddndSUf1MBqtZE3EPMr0hX4b9hJ_E1HF6DYeQRXMMLC8dr7YVpkicTjP9k3_qynO04bNx8_XYuZXUaR5NW0EtjvZbDiyMtgCQWACW4zWhrhvVy8IEQ9rFkqzM9l4Bq4pp4NiPoLq3H8U5mIs4cSA1QCXNY0xw&click=309e0958-63db-4e6a-af5d-36323dff5440&hsutk=9724d4a2324e477c9e07bd5bc116a679&signature=AAH58kHgO1iDS5UxsGXE42-d-rQ3tRsfbg&utm_referrer=https%3A%2F%2Fblog.prophetic-technology.com%2F&pageId=27424704174&__hstc=108876957.9724d4a2324e477c9e07bd5bc116a679.1556898525657.1588429855784.1588505789111.111&__hssc=108876957.2.1588505789111&__hsfp=2920323932&contentType=blog-post)** - [supply chain](https://blog.prophetic-technology.com/topic/supply-chain) - [disruption](https://blog.prophetic-technology.com/topic/disruption) - - - ## Post Your Comments Here #### About Us Prophetic Technology is a team of dedicated people that combine their expertise in business domains with a passion to release potential.s every page it appears on. 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