Resiliency is proven to be a trait that can predict a company’s success during challenging times. McKinsey & Company has dedicated lots of work to understanding supply chains in a post-pandemic reality. Resiliency isn’t just a source initiative for components but also includes choosing the right technology vendors who can support your global supply chain needs.
Diversity In Connectivity
Resilient supply chains have real-time access to systems, networks, and your vendor community to quickly pivot to new demand signals and service expectations. The interesting chart below shows the performance of companies that have refreshed their technologies, looked holistically at sourcing efforts, and therefore, limit the risk of extending their efforts beyond their control.
Networks hide interdependencies, accelerating crises (although they can also enable faster recovery)
The extent of networks within the global economy, societies, and industries is only partly visible. In a disruption, hidden interdependencies can emerge, unexpectedly accelerating the impact. Supply chain disruptions affect production, availability, and prices more quickly. The war in Ukraine threatens food security in low-income countries in the Middle East and North Africa. New and hidden interconnectivity makes systems more vulnerable. On the other hand, networks that provide more flexibility and reduce interdependencies permit a wider range of solutions to emerge and be shared quickly. Understanding networks and connections better in today’s environment is a key aspect of resilience.
Digital resilience, trust, and inclusion
Many global companies and financial institutions sustained operations during the COVID-19 pandemic through digital enablement of remote-working arrangements. The World Economic Forum cites research suggesting that the digital economy accounts for 15 percent of global GDP today and could expand to 26 percent by 2040.15 Digital inclusion is thus a growth imperative. It means improving digital infrastructure and connecting wider populations and heretofore excluded segments. The Forum-sponsored EDISON Alliance for Digital Inclusion seeks to create affordable and accessible digital opportunities for all by 2025 through an unprecedented collaboration between the information and communications technology community and other critical sectors of the economy.
Loren Data knows firsthand the importance and value of supply chain communications, reliable networks, and rapid new vendor enablement to increase resilience. Our partners and customers can quickly adjust by adopting different paths to resolutions and quickly identifying potential disruptions before they impact their business. In challenging times, this level of control makes a world of difference.
Jon Gatrell, CPO
Loren Data Corp.