Supply Chain Risk in 2023
Global supply is increasingly complex.
Are you protecting your supply chain?
Over the past few years, the world has faced a massive upheaval. The covid-19 pandemic, trade disputes, tariffs and civil unrest are disrupting every aspect of life, everywhere on the globe. Global supply chains have been profoundly affected by dramatic swings in shipping costs, travel bans, quarantine requirements, lock-downs, and emergency measures, as governments struggle to regain stability and restart economies… thankfully we are coming through the other end of these disruptions, but companies are still struggling to adapt to the new realities of doing business.
By now, you’re probably still in the thick of things trying to manage rising costs and maintain continuity of supply so a discussion of supply chain risks is redundant. The risks are your day-to-day, but there are things you can still do to protect and enhance your supply chain from further disruptions.
Addressing your supply chain risks now can help you protect your supply chain, as the slow recovery continues to unroll—and in the years beyond, as the world recovers and adjusts to new realities.
and If it isn’t obvious by now, here it is again: 2021 had seen nations shut down their entire supply network, and even now during 2023 we’re not entirely out of the woods yet. If you haven’t done it already, you need to diversify and enhance your supply chain right now.
You also need to be smart about how you do it, by picking suppliers and partners and countries that represent the lowest risk, while still offering the economic models you require.
The supply chain crisis was caused by backlogs across major supply chain hubs. Have you learned any lessons, and are you enhancing your supply chain to protect your business from any future crisis ?
So forget what you’ve read about the top risks facing your supply network. Here’s where things stand right now:
This has always been a problem, but travel restrictions have made it a critical vulnerability. You can’t simply fly to your supplier to oversee production or fix problems, certainly to the extent that was taken for granted pre-pandemic.
If you’re in the dark about your supply chain right now, you’re vulnerable. You need to get real-time access, or at least as close-to-real-time access, and to trustworthy data—and you need to have the capability to do something about it.
Many companies have relied on informal processes and have no long-term strategy to effectively protect their supply chains against risk. Without a plan, you are forced to react to changes rather than anticipate and respond to them.
Having a plan is only half the battle. You also need to be able to move to a new supplier without breaking your supply continuity.
What can you do right now?
In the short term, there are some tactical actions you can take to protect yourself and keep your supply chain as stable as possible.
We are the ideal future advisory partner for our clients. As businesses embrace new global strategies to achieve competitive advantage, they require a partner that provides the expertise, flexibility, agility and global reach to guide and support their journey. A partner that reduces complexity, understands global markets, and offers realistic solutions. That partner is MPK.