Is Your Supply Chain Resilient for a Coming Recession?

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The global shortages of goods and domestic inflation are soaring amidst the Russia-Ukraine war backdrop. At each step of the supply chain, new risks and disruptions emerge. With the economic slowdown—due to fiscal policy changes, geopolitics, and record inflation—dominating the news, leaders must focus on what they can do to sustain enterprise value. However, uncertainty and anxiety about where the economy and their businesses go next prevent leaders from forecasting and confidently setting the right course for their supply chain. So, how should supply chain leaders prepare for the coming recession? In this article at Gartner, Suzie Petrusic explains how you can recession-proof your supply chains.

How to Adequately Prepare for the Coming Recession

The big takeaway is that the coming recession is different from past recessions, and supply chain leaders can take a cool-headed approach to their response,” says Petrusic. Furthermore, the author opines that supply chain leaders must delay changes in strategic decisions based on a too-early assessment of the recession. Here are some tips to help you make your supply chains more resilient for recessions.

Have a Contingency Plan

Build your contingency plan based on your organization’s overall supply chain strategy. Furthermore, being proactive and having backup suppliers puts you in a better position to think ahead and strengthen your supply chain networks. Be sure to frequently speak with these contingency suppliers.

Develop a Command Center Approach

Collect and analyze all the data possible to detect overt signals from suppliers and other subtle signs such as delays in communication, changes in staffing, and longer lead times. By developing a command center approach, you can create a plan to handle the issues and renegotiate or cancel the agreement when required.

The author also suggests that supply chain leaders reevaluate their risk appetite and adjust to a level appropriate to the current environment.

To learn more about building supply chain resilience for the coming recession, click on https://blogs.gartner.com/beyond-supply-chain-blog/its-time-to-rethink-your-recession-playbook/.

The post Is Your Supply Chain Resilient for a Coming Recession? appeared first on AITS CAI’s Accelerating IT Success.

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