Learn how to avoid pitfalls and align these mitigation capabilities to risk appetite to improve cost and operation outcomes after disruption.
What to know from the Gartner® report #
Supply chain leaders seek to proactively manage risks, but struggle to realize the return on investments in resilience, visibility, and agility. Gartner® explores how to avoid pitfalls and align these mitigation capabilities to risk appetite to improve cost and operation outcomes after disruption.
Key Findings: #
Resilience, visibility, and agility are buzzwords that many stakeholders use differently. Though most organizations focus on visibility and resilience, all three are necessary to enable lower-cost and operationally sound disruption responses.
Most organizations seek to establish resilience through redundancy, but many reported using less than half of the redundancies they had in place to respond to disruptions over the past year.
Despite massive investments in visibility through technology, many operational and frontline staff report being overwhelmed by the number of alerts they get and struggle to understand the impact of disruption through time.
While agility has been a key element of supply chain strategy long before risk management emerged as a key initiative for supply chain leaders, many frontline and operational staff report deviating from defined processes to execute disruption responses, and are afraid to make decisions.
Gartner® Report: Build Resilience, Visibility, and Agility to Lower Risk Impact
“Risk management is a process that ensures consistent delivery of a business outcome: meeting demand with supply profitable despite disruption. Visibility, resilience and agility are just three capabilities that help us do so.”
Today, many organizations chase resilience, visibility, and agility to manage risk, but struggle to understand what these capabilities are, why each is uniquely important, and how they work together to manage risk profitably. #
Today, many supply chains rely on buffer inventory and dual-sourcing for resilience and redundancy. Look beyond these two levers to manage costs. Network design can help balance service, cost, speed, and risk with other sometimes less expensive strategies. #
Flexible warehousing infrastructure drives action #
Flexible Warehousing creates supply chain flexibility, agility, and resilience. Flexible Warehousing Infrastructure compliments fixed infrastructure. It allows companies to dynamically add warehouses when, where, and for as long as necessary. It transforms networks to move—supporting innovative strategies and continuous improvement.
Benefits: #
- On/nearshoring: Rapidly test new distribution locations and transportation routes on a smaller scale without long-term investments.
- Regional or channel expansion: Enable rapid and experimental network design in new markets to support growth in demand or expansion of channels.
- Manage safety or buffer stock: Store excess inventory to stabilize fluctuations in the supply chain from disruption.
- Network consolidation: Lower costs and decrease complexity while improving the visibility of operations.
All without investing in long-term commitments to a location—and with a single, risk-free integration.
Flexible Warehousing Infrastructure improves resilience, agility, and flexibility
Gartner, Build Resilience, Visibility, and Agility to Lower Risk Impact Published 31 May 2024, By Suzie Petrusic Et Al. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
