What does supply chain resilience refer to?

Supply chain resilience refers to the ability of a supply chain to adapt to and recover from disruptions, such as natural disasters, economic shifts, or unexpected spikes in demand. This concept is crucial in ensuring that a supply chain can continue to operate smoothly, manage risks effectively, and maintain service levels even when faced with unforeseen challenges.

A resilient supply chain entails having processes and systems in place that can handle changes, minimize the impact of disruptions, and quickly return to normal operations. This might involve diversifying suppliers, implementing flexible inventory management practices, and utilizing data analytics for better forecasting and response strategies.

Understanding this definition highlights the importance of resilience in today's interconnected global economy, where disturbances can occur at any stage of the supply chain. Being prepared for variability and challenges ultimately contributes to the sustainability and reliability of the supply chain.