Are you considering all factors that impact supply chain resilience?

A resilient supply chain is one that has the ability to effectively prepare for, respond to, responsibly recover, and bounce forward from an unexpected disruption and grow sustainably by utilising natural and social resources responsibly and learning to adapt for the future disruptions.

Supply chain resilience is achieved through the deployment of pre-disruption capabilities of supply chain planning and visibility, during-disruption capabilities of collaboration, resource management, and supply flexibility, and post-disruption capabilities of learning and adaptation. These capabilities require three core considerations including ESG sustainability, leadership and strategic alignment.

Do you have a supply chain resilience plan that covers the three phases of pre-disruption, during disruption and post-disruption?

Here are some key indicators/practices/capabilities for demonstrating resilient supply chains:

• Supply & demand planning, production planning, supply chain network design
• Accessing data from across the supply chain and exploiting that data to improve forecasting, tracking and traceability
• Working with suppliers and customers on contract management, information sharing and developing partnerships
• Developing resource management such as, financial management, product management, material management and asset management
• Enhancing supply flexibility e.g. through single vs multi-sourcing (global, regional, local) and process standardisation
• Ensuring lessons learned are captured and acted on as well as developing KPIs, knowledge management, training and education

Do you use data to inform your supply and demand planning or forecasting? Do you provide forecasting and management solutions to help organisations predict their demand and optimise their supply?

Sensing models have already been adopted by a range of businesses across specific sectors such as FMCG to improve their response to varying demand in the short-term. Traditional forecasting methods rely on historical data to estimate future performance. Too much reliance on historical data for predicting future planning now means that businesses cannot respond in an agile manner to Supply Chain changes and quickly facilitate production and delivery across the supply chain tiers to meet their needs.

Whereas in the past this approach may have been sufficient, new technology and access to data enables intelligent supply and demand sensing which can use a broader range of signals and mathematical models that factor in real-world events. Doing this effectively not only creates more accurate demand forecasts but at the same time can predict supply shortages and mitigates the risks of supply-demand imbalance.

Here are some key indicators/practices/capabilities for demonstrating resilient supply chains:

• Capturing multiple real-time demand signals to improve the overall demand forecast accuracy
• Real-time data analytics to provide visibility into potential supply shortfalls
• Predict and provide early warning related to Service and Inventory risks based on the state of the demand and supply conditions
• Perform supply chain simulation and scenarios analysis

Are you able to access information from across your supply chain to inform key business decisions? Do you provide visibility solutions to help organisations build transparency across their supply chain?

Supply chains are increasingly impacted by disruptive events and this is causing far reaching consequences for businesses and consumers. The standard at the moment is that retailers can interact with their tier one suppliers, but the further down a supply chain that a supplier is, the less likely that the brand or retailer has visibility. Any challenges caused by tier 2,3 and 4 suppliers can cause unexpected disruption and limits their ability to effectively plan for changing events.

Supply chain visibility can mean many things depending on the context but refers to the ability of a business or organisation to track and monitor the various elements and processes within its supply chain in real-time or near-real-time. It involves having a clear, comprehensive, and transparent view of the entire supply chain, from the sourcing of raw materials to the delivery of finished products to end customers.

Here are some key indicators/practices/capabilities for demonstrating resilient supply chains:

• The capability to track and monitor the movement of goods with up-to-the-minute information about the status and location of products within the supply chain
• Consolidating data from various sources, such as suppliers, manufacturers, logistics providers, distributors and retailers to create a unified and coherent view of the supply chain
• Comprehensive visibility across all stages of the supply chain, from procurement and production to distribution and delivery
• Facilitating information sharing among different participants in the supply chain, such as forecasts and performance metrics to improve collaboration and decision-making

Do you proactively work with your supply chain partners on initiatives designed to improve collaboration? Do you help organisations use technology that facilitates collaborative working or data sharing with their supply chain partners?

Supply chain collaboration refers to the cooperative and coordinated efforts among different entities within a supply chain to achieve common goals and improve overall efficiency, resilience and sustainability of the entire supply chain. Supply chains by their very nature are networks of organisations interacting with each other to bring products and services to market. Through a focus on collaboration across the supply chain organisations can achieve enhanced performance for their business.

Here are some key indicators/practices/capabilities for demonstrating collaborative supply chains:

• Working with suppliers and customers to jointly manage supply chain risks and resilience using the latest digital technologies.
• Working with suppliers and customers to share information to enhance the efficiency, resilience and sustainability of the supply chain
• Working with suppliers to trace and verify the provenance of materials and components from source
• Working with suppliers and customers to ensure digital supply chain integration using e.g. common standards, systems, interfaces, interoperability
• Working with suppliers and customers to develop shared goals and key performance indicators (KPIs) that allows each entity within the supply chain to working toward Digital Supply Chain Hubs

Do you have a framework for measuring and reporting your emissions? Do you provide ESG solutions to help organisations measure, structure and report their ESG information across their supply chain?

With the UK government’s push to get to net zero by 2050, businesses will come under increasing pressure to act and reduce the emissions they emit. It is widely accepted that supply chains typically account for 80-97% of a businesses CO2 output through scope 3 emissions. Though some protocols and methodologies exist for the measurement of scope 3, they are not widely accessible to businesses. Getting access to the right level of data is complex with much of it being generic, out of date or both. Altogether this situation is also holding back the market for new business models and the opportunity to tackle the route to net zero together.

• Direct emissions:
  • Scope 1
    • Definition: Emissions from operations that are owned or controlled by the reporting company
    • Examples: Emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment
• Indirect emissions:
  • Scope 2
    • Definition: Emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company
    • Examples: Emissions from the generation of purchased electricity consumed by the reporting company; emissions from the generation of purchased steam, heating, or cooling consumed by the reporting company
  • Scope 3
    • Definition: Emissions that are a consequence of the activities of the reporting company, but occur at sources owned or controlled by another company
    • Examples: Emissions from the extraction and production of purchased materials and fuels; transport-related activities in vehicles not owned or controlled by the reporting company; electricity-related activities (e.g., transmission and distribution losses) not covered in Scope 2

Are you actively measuring and sharing your scope 1, scope 2 and scope 3 emissions?

Here are some key indicators/practices/capabilities for demonstrating sustainable supply chains:

• Measuring and quantifying the greenhouse gas emissions, particularly CO2, generated across scope 1, scope 2 and scope 3
• Implementing strategies to reduce carbon emissions e,g, optimising transportation routes, adopting energy-efficient manufacturing processes, sourcing materials responsibly and incorporating renewable energy sources
• Collaborating with suppliers to encourage and support sustainable practices e.g. selecting suppliers with strong environmental performance and working together to reduce emissions
• Providing transparency about the carbon footprint of supply and manufacture activities along with reporting progress toward sustainability goals

Are you optimising your finance and inventory to enhance the efficiency and resilience of your business? Do you provide finance and inventory management solutions to help organisations optimise their working capital?

Supply chain finance refers to financial solutions that optimise the management of working capital and liquidity across the supply chain. Effective supply chain finance can enhance your business through improved cash flow and reduced financial risks for all participants in the supply chain. Inventory is a significant component of working capital and managing inventory levels is essential to strike the right balance between having enough stock to meet customer demand and minimising excess inventory that ties up capital.

Here are some key indicators/practices/capabilities for demonstrating efficient working capital:

• The implementation of financial approaches such as early payment discounts, factoring, and other financing mechanisms to accelerate payment processes
• The use of techniques to optimise stock through inventory management

Have you considered how optimising logistics can improve your business? Do you provide optimisation solutions to help organisations to manage logistics effectively to improve business performance?

Unfortunately, approximately 25% of trucks on the road are empty and 50% are only 25% full, putting significant cost pressures on participants across the end-to-end manufacturing supply chain. Providers are facing considerable challenges from increased fuel and labour costs, cost and time pressures from clients, as well as new legislation and customer demands to reduce congestion and the impact of road freight on our environment.

Logistics optimization refers to the process of maximising efficiency, reducing costs, and improving overall performance within the logistics and supply chain management processes. It involves strategic decision-making and the application of various tools and techniques to streamline the movement of goods, minimise resources, and enhance customer satisfaction. The goal of logistics optimization is to achieve the most effective and efficient logistics operations possible.

Here are some key indicators/practices/capabilities for demonstrating resilient supply chains:

• Efficient route planning for transportation is critical to minimise fuel costs, reduce transit times, and enhance delivery reliability
• Optimising inventory levels is crucial to avoid excess carrying costs while ensuring that enough stock is available to meet customer demand
• Efficient warehouse operations contribute significantly to logistics optimization. This includes optimising warehouse layout, implementing automation, and employing advanced inventory management systems to reduce picking times and errors
• Collaborating with suppliers to streamline the inbound supply chain can lead to cost savings and improved efficiency. This involves synchronised production schedules, just-in-time delivery, and shared information to optimise the flow of materials