Supply chain resiliency refers to the ability of a company’s supply chain to bounce back from disruptions and maintain normal operations. The term has gained significant attention in recent years, as supply chains have become increasingly complex and globalized, making them more vulnerable to disruption from various sources, including natural disasters and political instability. The COVID-19 pandemic highlighted the importance of supply chain resiliency, as many companies experienced disruptions in their supply chains, causing delays, shortages, and price increases. As a result, companies have become more focused on building resilient supply chains that can withstand future disruptions and minimize the impact on their operations. How do we know so much about this topic? At Mitas, our own black belt holding CEO got serious about supply chain resiliency.

Supply Chain Visibility

There are several key factors that contribute to supply chain resiliency. One of the most important is supply chain visibility, which refers to the ability to track products and materials as they move through the supply chain. This allows companies to identify potential disruptions early and take proactive measures to mitigate them. Supply chain visibility can be enhanced through the use of technology such as RFID tags, GPS tracking, and blockchain.

Supplier Diversification

Another key factor is supplier diversification. Companies that rely on a single supplier for critical materials or components are more vulnerable to disruptions than those that have multiple suppliers. By diversifying their supplier base, companies can spread their risk and reduce their dependence on any one supplier.

Risk Management

Risk management is also an important component of supply chain resiliency. This involves identifying potential risks and developing strategies to mitigate them. For example, companies can use risk assessment tools to evaluate the likelihood and potential impact of different types of disruptions, such as natural disasters or labor disputes. They can then develop contingency plans to minimize the impact of these disruptions on their operations.


Flexibility is another important aspect of supply chain resiliency. Companies that are able to quickly adapt to changing conditions and adjust their supply chain operations as needed are better positioned to withstand disruptions. This can involve strategies such as maintaining excess inventory, using alternative transportation routes, or temporarily shifting production to different facilities.


Collaboration is also critical to building resilient supply chains. Companies that work closely with their suppliers, customers, and other stakeholders are better able to identify potential risks and develop strategies to mitigate them. This can involve sharing data and information, coordinating planning and operations, and developing joint contingency plans.

Continuous Improvement

Finally, continuous improvement is essential to maintaining supply chain resiliency over the long term. This involves regularly assessing the effectiveness of existing strategies and making adjustments as needed. Companies can use metrics such as lead time, inventory turnover, and on-time delivery to monitor the performance of their supply chain operations and identify areas for improvement.

In conclusion, supply chain resiliency is essential for companies that want to maintain normal operations in the face of disruptions. This requires a combination of strategies, including supply chain visibility, supplier diversification, risk management, flexibility, collaboration, and continuous improvement. By investing in these areas, companies can build supply chains that are better able to withstand disruptions and deliver value to their customers.