Building Resilient Supply Chains:

A Multi-dimensional Approach

Building a resilient supply chain is crucial in today’s complex and volatile business
environment. To achieve this, operations must invest in the four pillars of
resilience: Visibility, Flexibility, Collaboration, and Control.

Rather than small, neatly organised linear supply chains that

are relatively easy to trace and understand, most supply chains
today are a mosaic of interdependent actors that require complex
analysis to figure out. The inability to illuminate supply chains
often leaves vulnerabilities hidden in the complexity. Add to this
the global volatility and the rising strategic competition between
leading trade partners, and the need to rethink supply chains
becomes increasingly clear.

With a series of disruptive supply chain events over the past

decade, the impact is felt across the globe. Events such as Brexit,
the pandemic, the blocking of the Suez Canal, the climate crisis
and Russia’s war against Ukraine are felt across the globe trough
impacts such as material shortage, high inflation rates, and logistics
capacity shortage. (1) (2)

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Building Resilient Supply Chains: A Multi-dimensional Approach

Resilience a major theme now and in the future • For many companies, technology advancements, such as an
In late 2022, we asked Deloitte’s Supply Chain Panel about their top APS solution, can help improve both internal and external
priorities in 2023. Their answers confirmed a very strong focus on supply chain management through better connectivity, visibility,
resilience, where more than 3 of 4 respondents value resilience in and collaboration. Among Deloitte’s clients, we are already
their operation as important. You can read the full report here. (3) seeing holistic strategies that leverage the latest APS solutions
Similarly, 67% of respondents in Deloitte’s annual “Supply Chain by integrating sales, marketing, and procurement with supply
trends & Priorities Survey 2023”, conducted in collaboration with planning to rapidly assess the impact of business decisions,
IDA Operations Management, rate that they experience a need for evaluate what-if scenarios, and perform root cause analysis to
increased supply chain resilience in their operation. (4) identify improvement opportunities.

However, supply chain resilience is not one-dimensional. To • Given that IBP is a collaborative process where tactical plans
create a resilient operation, you must invest in all four of the across a portfolio, customers, and production- (or service-)
pillars of resilience: Visibility, Flexibility, Collaboration, and Control. resources are aligned and calibrated against business aims, it
Additionally, you must secure a strong foundation within your talent can be a considerable boost for resilience. Simultaneously, risk
development, your processes, and your data & technology. (3) and opportunity are discovered and assessed in scenarios, giving
the executive team a clear picture of the business’s status and
More insights into resilience enablers in the supply chain can be
the chance to decide how to keep it on course and in line with
read in the report.
strategic objectives.
No journeys towards resilience look the same
Your journey towards supply chain resilience will depend on many
factors, such as your success criteria and your baseline. However,
tools such as Advanced Planning and Scheduling (APS) solutions or
Integrated Business Planning (IBP) processes can take you a long
way.

...supported by a clearly defined governance

structure and key enablers

Governance

Visibility Flexibility Collaboration Control

The ability to The ability to quickly The ability to develop The ability to
illuminate the entire adapt to discruptions symbiotic and implement and
supply chain and without significantly trust-based execute policies and
create supply chain increasing relationships cross processes that
visibility as a basic for operational costs functionally, as well increase control of
risk identification as with supply chain the supply chain, as
partners and strategic well as expanding the
networks span of control in the
end-to-end supply
chain

Resilient supply chains are characterized by four pillars

Org & Talent Processes Data & Technology

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Building Resilient Supply Chains: A Multi-dimensional Approach

A multidimensional approach
Delivering capabilities to build resilience demands an updated
approach to planning that pulls together a wider range of
stakeholders to improve speed, flexibility, and responsiveness
throughout the supply chain network. This requires embracing a
comprehensive transformation that encompasses various enablers
and strategies, while instilling a resilience mindset within the
workforce.

While business processes are key to sustaining capabilities,

businesses recognize the pivotal role of technology as a critical
building block of a comprehensive solution. By leveraging advanced
technological tools and platforms, organizations can enhance their
operational efficiency, visibility, and real-time decision-making
capabilities.

When these two crucial elements, namely technology and

business process planning, converge within an organization ready
for change, remarkable transformations occur. With the right
tools, processes, and mindset, businesses can build a robust
and adaptable supply chain network capable of withstanding
disruptions, seizing new opportunities, and delivering exceptional
value to customers – a true multidimensional approach.

Sources:
(1) IMF world-economic-outlook-update-january-2023.
(2) Deloitte, Looking beyond the horizon, 2020
(3) Deloitte Supply Chain Resilience Report
(4) Supply Chain trends & Priorities Survey 2023, Deloitte and IDA
Operations Management
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Building Resilient Supply Chains: A Multi-dimensional Approach

Authors:

Emma Visgaard Duch

Author
[email protected]
+45 30 93 44 61
LinkedIn

Camilla Thuge Lund

Partner
[email protected]
+45 21 15 56 29
LinkedIn

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