Will supply chains ever learn the need for true risk management and resilience?
A seemingly endless series of disruptions has plagued supply chains in recent years. Yet many companies continue to source critical materials in just a handful of locations — and sometimes just one. Microprocessors, neon, lithium, coolant, nickel, palladium, rare earth minerals: the list goes on. So why not diversify suppliers, and eliminate the risk of major disruption? That’s not always possible, explains Bindiya Vakil, chief executive officer of Resilinc. Single-sourcing presents a huge risk, she agrees, but the key to mitigating that risk rests with the adoption of technology that ensures trust and transparency in supplier relations. And companies must learn to do more than merely be good at reacting to whatever disruption comes along. Transformation “doesn’t change overnight,” Vakil says, “but the need to change is yesterday.”