Successive waves of global and local disruptions to supply chains are forcing companies to rethink their supply chain strategies.Companies are replacing an emphasis on cost savings with resilience, according to Gartner supply chain practice research director Sabu Mathai.“For many supply chain leaders, the past three and half years of seemingly unending crises have felt like a blitz. “Constant disruptions and a shortage economy have forced a rethink in supply chain strategy, with chief supply chain officers justifiably devoting more attention and energy to resilience than they had during a bygone age of supply chain stability,” he says.In addition to global developments, supply chain managers in the SADC region need to remain resilient in the face of poorly maintained infrastructure, border delays, congestion, crime, high fuel prices, and skills shortages. Federica Livelli, business continuity and risk management consultant at BeDisruptive, says sustainability and adherence to environmental, social and governance standards are now integral components of supply chain management. “This shift is not just about risk mitigation, propelled by heightened consumer awareness and stricter regulations, it is evolving into a fundamental business principle. “Therefore, embracing sustainability not only mitigates risks, but can also unlock fresh market opportunities and fuel innovation within supply chains.”Sustainable companies will have a supply chain which is agile, adaptable and aligned, according to Stanford University professor Hau L Lee.“Top-performing supply chains possess three very different qualities. “First, great supply chains are agile. They react speedily to sudden changes in demand or supply. “Second, they adapt over time as market structures and strategies evolve. “Third, they align the interests of all the firms in the supply network so that companies optimise the chain’s performance when they maximise their interests. “Only supply chains that are agile, adaptable and aligned provide companies with sustainable competitive advantage.”
