Why effective risk management strategies area must-have for global supply chains

It has been for many decades now that global supply chains have been bearing the brunt of disruptions, be it natural disasters or geopolitical issues. The Covid-19 pandemic has brought to the fore vulnerabilities in supply chains, which resulted in revenue loss, customer churn, and diminished market value for organizations. Covid-19 has reiterated the need for organizations to embrace new-age supply chain technologies in their bid to build future-ready supply chains, which will not only help organizations ride out any supply chain storm, but also stay well equipped to thrive in the future. Of course, the telling effects of the coronavirus have compelled organizations across the globe to take a hard look at their existing supply chain models and accelerate measures to focus on core elements of risk management, business continuity planning, and technology innovations in their overall supply chain strategies.The unprecedented times have made it imperative for organizations to identify risks and leverage risk management tools and frameworks to deal with disruptions, develop a risk-awareness culture as well as devise prompt and effective contingency plans.

Amid Covid-19 battering, new-age supply chain technologies are a crying need for organizations to cope with diverse disruptions across their supply chains.Any talk of new-age supply chain technologies cannot miss the mention of Artificial Intelligence and Big Data Analytics. Such supply chain technologies not only provide organizations with real-time visibility but also enable them to anticipate demand in advance as well as provide them with the ability to scale down or expand production.

Another supply chain technology that gets organizations excited is IoT (Internet of Things) that can ensure real-time shipment tracking and storage condition monitoring across supply chains. This supply chain technology also improves the forecast accuracy of shipment delivery, leading to increased end-customer satisfaction, better warehouse planning, and risk mitigation.Besides Artificial Intelligence & Advanced Analytics, and IoT, another supply chain technology that can be handy for organizations is Blockchain. Various blockchain applications like real-time load traceability, smart contracts, and fraud detection, etc. can drive more trust, transparency, and efficiency in the overall supply chain process. Among other new-age supply chain technologies, robotics and automation are gaining traction as these technologies can streamline tasks and processes that were once performed manually. These supply chain technologies can help reduce worker fatigue, augment efficiency, and drive economic benefits.

The pandemic has made it exceedingly challenging for global supply chains and realization has dawned among organizations to accord high priority towards ensuring their supply chains are resilient and future-proof.