2025 Mar 14, 13:41
The supply chain is a complex network that manages the creation and distribution of goods and services, involving interconnected activities, organizations, people, and resources. It encompasses every stage, from raw materials to the final product in consumers’ hands, including procurement, production, transportation, storage, and distribution. Stakeholders like suppliers, manufacturers, logistics providers, retailers, and consumers collaborate to ensure a smooth flow of products. According to Akstst Jain, Research Scholar, IIT Delhi, supply chains are crucial for businesses and economies, shaping trade patterns and influencing the availability and affordability of goods and services worldwide. Prior to the Covid-19 pandemic, supply chain managers primarily focused on just-in-time inventory management, which aimed to reduce costs and improve efficiency
However, the pandemic revealed the limitations of this approach in preparing global supply chains for extreme shocks. The disruptions caused by the pandemic highlighted the importance of robust risk management and mitigation strategies. Organizations now face the challenge of reassessing their supply chain strategies, designs, and dependencies to effectively navigate unexpected challenges. The disruptions to supply chains are expected to continue even in 2023, according to KPMG 2023 CEO Outlook. Enhancing supply chain resilience is crucial in addressing the challenges arising from the Covid-19 outbreak
There are numerous factors that interrupted the flow of the supply chain process during and after the pandemic. These include disruptions in demand patterns, supply shortages and inconsistencies, limited availability of essential materials and services, and delays in procuring raw materials. The aftermath of the pandemic has ushered in a new era of supply chain management, characterized by innovation, collaboration, and adaptability. Companies have learned the importance of diversifying suppliers to mitigate risks and foster healthy competition among suppliers. Embracing advanced technologies like IoT, blockchain, AI, and data analytics can provide real-time visibility and enhance decision-making in the supply chain
Building strong relationships and communication channels with suppliers and partners is also crucial for resilience. To build resilient supply chains, companies need to diversify their supplier base, adopt advanced technologies, and prioritize sustainability. Thorough risk assessments and the development of strategies to mitigate risks are also essential. By embracing these measures, companies can ensure the resilience of their supply chains in the face of future challenges.