From efficiency to resilience: Supply chains in an uncertain world
Rick Kroon, Argon & Co, Europe For decades, supply chains were designed primarily around cost and efficiency. Globalisation, lean inventories, and just-in-time production enabled companies to operate at minimal margins. Yet the disruptions of recent years, from the COVID-19 pandemic to geopolitical tensions, extreme weather, and raw-material shortages, has exposed the fragility of this model. Today, resilience has become a strategic capability. Organisations are recognising that supply chains built solely for efficiency, struggle to absorb shocks. Resilient supply chains, by contrast, can anticipate, adapt, and recover while maintaining service levels and profitability. A Gartner Supply Chain Survey1 (2024) found that 83% of global supply chain leaders now prioritise resilience, up from just 45% before the pandemic, underscoring a clear shift from “cheapest” to “strongest.” Understanding the new risk landscape Uncertainty is no longer an occasional issue; it has become a constant aspect of global trade. Disruptions arise from multiple directions: Geopolitical instability, including trade restrictions and regional conflicts. Climate-related events affecting production and logistics networks. Cybersecurity threats across increasingly connected digital supply chains. Demand volatility and supply shocks driven by inflation and market fluctuations. According to Lund et al.2 (2020), companies can expect month-long disruptions every 3.7 years on average, with the potential to erode up to 45% of one year’s EBITDA over a decade. Building resilience is therefore not only a defensive strategy, but also a financial imperative. Resilience and efficiency can coexist A common misconception is that resilience inevitably increases cost. In reality, modern supply chains can achieve both efficiency and resilience through intelligent design, enhanced visibility, and proactive risk management. Leading organisations focus on three levers: Visibility and transparency Digital control towers and predictive analytics enable faster detection of disruption, improved exception management, and more informed decision-making according to Deloitte3 (2018). Diversification and optionality Multi-tier, multi-location sourcing models, including nearshoring and regionalization, reduce […]
