What is Supply Chain Resilience?

Supply Chain Resilience Definition

Supply chain resilience is the ability of a company to quickly react to and recover from supply chain disruptions without significant impact to the production or shipment of products. Supply chain disruptions can include events such as natural disasters, regional conflicts, and pandemics.


Why is supply chain resilience important?

Supply chain resilience enables organizations to prepare for and mitigate risk from unforeseen and potentially disruptive events. The ability to respond quickly and lessen the impact of these events increases customer satisfaction and enables companies to gain a competitive advantage.

How do you build supply chain resilience?

To build supply chain resilience, you need:

  • Digital technology that enables real-time communication between product teams and supply chain partners from any location
  • Digital technology that provides product teams and supply chain parterns greater visibility into production errors, material shortages, and other issues that impact product shipments
  • Redundancies, including safety stocks and diversified sourcing to ensure business continuity
  • Effective demand planning processes

*Source: https://www.brookings.edu

What causes disruptions in supply chain?

Supply chain disruptions can come from several sources, including:

  • Natural disasters
  • Global pandemics
  • Changes in customer demands/buying behavior
  • Political turmoil/regional conflicts
  • Labor disputes
  • Raw material or part shortages

The Cost

Delivering new products to market is challenging. And it is difficult to see the cost impact of one or more mistakes.

Try our calculator to estimate the impact on your business. Input your business details, select a challenge, and see the real-world cost impact as validated by our customers.