Make a Plan for Unprecedented Disruptions

Blog

Make a Plan for Unprecedented Disruptions

2 minuti di lettura

The unexpected happens more frequently these days. According to a survey by BCI, 72% of organizations have experienced at least one supply chain disruption in the past year. Whether the disruptions come from geopolitical disputes or climate change, events that should be once in a lifetime happen every few years across the supply chain. 

While no one can know exactly what unprecedented event will happen next, we can assume it’s on the way. With that in mind, how should your company prepare your supply chain to mitigate risks? Is it even possible to plan for the unexpected? 

With the right data and a network of powerful solutions, it just might be. Here’s how you can make a plan to overcome the unprecedented and remain profitable.  

Model most likely disruptions  

The biggest gift to today’s companies is the amount of data available. Decision makers can access internal data as well as external data, like weather or transportation patterns. Knowing what has happened in the past provides a great indicator for what could happen in the future.  

Companies already use data to forecast supply and demand planning. However, they must take an extra step to build a resilient supply chain. Using generative AI tools, businesses can model likely what-if scenarios based on known factors in the economy, customer trends or climate events. 

Not every scenario will occur, but proactive scenario planning provides a better foundation for preventative strategies. Pick the disruptions that would be most costly or insurmountable if they were to happen today and solve for vulnerabilities in the supply chain. 

In the past, companies would bypass this step because of the additional time it takes to collect and analyze such extensive data sets. But with the help of AI, companies can work through each step in a matter of minutes. According to KPMG, combining accelerated decision making with faster execution can improve service level 400 basis points and increase gross margin 5.5%. When the tools are available to make these improvements, there’s really no reason to be entirely unprepared in today’s world. 


Conquer the top 10 causes of shipping delays

With AI-powered transportation management software, you can ensuring on-time delivery amidst today's complex supply chain challenges.

Discover More

Collaborate on comprehensive strategies across the supply chain 

Another distinction between today’s supply chain and those of the past is the impact even a small disruption can have, globally. Today’s companies run their supply chain on tight margins, both financially and in terms of production. What’s more, today’s consumer demands can shift in an instant. There is little room for error (or hesitation) for companies that want to remain profitable. 

Strategies must be created with the entire supply chain in mind. For example, a disruption in supply can impact transportation requirements everywhere. Teams must communicate across the supply chain in real time, both when the disruption occurs and when the solution is determined. This gives other teams time to anticipate and adjust to the new plan. 

For Blue Yonder customer, Bayer Crop Science, adopting the necessary solutions resulted in a 4% decrease in logistics costs. These improvements allow for better margins and more efficient organizations. 

As a first step, businesses should implement a communication plan for unprecedented events. Better still, companies need to ensure all teams work together on the same solution. An end-to-end solution gives everyone the same data, the same strategies, and the same communications at the same time. The result is a more collaborative, efficient supply chain that can withstand whatever comes next.  

Prioritize upgrades for agility 

Finally, the best protection against the unexpected is to invest in agile solutions. Rigid structures that separate sections of the supply chain make it impossible to react quickly when disruptions occur.  

Switching technology is a complex process that often involves a lot of stakeholders. It makes sense that companies would delay the change as long as possible. However, based on the number (and variety) of disruptive events in the last few years, it’s reasonable to say that window for waiting is closed. More importantly, making the switch to new solutions is easier today than ever in the past. 

Companies must start to invest in tools that make them more agile, more transparent, and more profitable. The growing pains may hurt for a few weeks, but the lasting benefits far outweigh any temporary drawbacks, especially when the next unexpected event takes place. 

Learn more about Blue Yonder’s end-to-end solutions 

Start your journey to becoming more resilient to the world’s unprecedented events. Learn more about Blue Yonder’s solutions and how our products serve your requirements across the entire supply chain.