The global supply chain network has been rocked by the pandemic, a shock unlike any other natural or man-made disaster. As the pandemic impacted communities worldwide, organizations had had to weather disruptions, swift changes in regulations and rapidly evolving customer needs.
This has left global supply chains in a vulnerable state.
However, organizations with a clear understanding of their supply chains have been more resilient to continued and cascading shocks, resulting in increased business stability and in some cases rapid growth.
Technology is aiding many of these organizations in creating digital maps (also called digital twins) of their supply chains. These digital maps contain relevant information on an organization’s suppliers, sites and products at risk, allowing them to conduct scenario analyses that can inform contingency plans.
In the event of a supply chain disruption, organizations can then make vital decisions more proactively without scrambling for information and data. Furthermore, such transparency through technology enables flexibility in an organization’s supply chains, which can allow organizations to increase the geographic diversity of suppliers, add more local suppliers and ensure key materials are not sole sourced.
Even though creating a digital map is resource and cost intensive, we anticipate more leaders and organizations to incorporate it going forward as part of their risk mitigation or resilience strategy and include it into their supplier performance metrics and targets.