Rather than waiting out volatility, companies are making permanent adjustments to protect margins and continuity. All of this diversification could require more redundancies in supply chains, depending on how geopolitics and the future business landscape evolve. For example, in a bipolar world in which a US-led Western bloc competes with a bloc aligned with China and its allies, remaining neutral won’t suffice. Companies may need duplicate supply chains, particularly in strategic sectors such as semiconductors and critical minerals. To improve their resilience, many companies are diversifying their manufacturing and sourcing footprints by developing more geographic options.
Companies are expanding their internal capabilities to work to meet potential demand
This study systematically evaluates the literature of supply chain resilience by integrating bibliometric and network analysis techniques. This analysis is conducted following the dynamic capability, as a theoretical lens, to understand and analyse supply chain resilience. We extracted and curated 294 peer‐reviewed articles from leading academic databases, Web of Science and Scopus, covering the period from January 2000 to 2024.
The growing importance of industrial policy for profitable growth
A conceptual framework is formulated after an extensive examination of all https://detroitapartment.net/securing-machinery-loads-from-ohios-manufacturing-hubs.html of the methods, tools, and approaches that have facilitated the management of supply chain disruptions. Internet of Things (IoT) devices enable real-time monitoring of inventory, equipment and environmental conditions, offering valuable insights into supply chain performance. By connecting these devices to enterprise systems, businesses can react quickly to potential disruptions.
They derive from network analysis and reveal connections between works depending on the degree to which their contents are identical (Kiani Mavi et al., 2022). The KCON analysis is used to determine the individual fields of study inside each cluster, and RFPN analysis is employed for the cluster analysis. Using clustering methods, a network’s nodes can be broken down into smaller groups called modules, each of which can be used to properly understand the specific sub-fields of a given study subject (Fahimnia et al., 2015). Cut costs, streamline procurement, and improve supplier management, fast, no code, all in one experience. Contingency involves establishing backup processes and maintaining extra inventory to ensure business continuity during disruptions. Climate Tech (83%) and EV (81%) lead intensity, but even Robotics (67%) and MedTech (61%) show strong integration.
Third party failures are the most frequent reason for disruption
Additionally, a comprehensive risk management plan—regularly updated with input from key stakeholders—can help businesses identify, prioritize and respond to potential supply chain risks more effectively. In Europe, nearly half of organizations have yet to factor climate risk into their supply chain considerations, though a quarter intend to tackle this issue. Asia demonstrates a higher level of awareness, likely due to the more frequent occurrence of weather-related events and natural disasters in the region. In December 2018, the Department of Homeland Security established the ICT Supply Chain Risk Management (SCRM) Task Force. Co-chaired by CISA and the Information Technology and Communications Sector Coordinating Councils, the Task Force is a public-private partnership charged to identify and develop consensus risk management strategies to enhance global ICT supply chain security.
A multi‐stage simulation, optimisation pipeline, which iteratively refined decision variables based on simulated disruption scenarios, could have offered a more robust tool for resilience planning. Such frameworks would have enabled managers to test and compare various risk mitigation strategies, such as buffer inventory versus dual sourcing, and determine the optimal configuration under different conditions. Third, although sustainability was a frequently discussed topic, its integration with resilience strategies was insufficiently developed. There was a pressing need for unified frameworks that simultaneously addressed economic, environmental, and social dimensions, thereby offering a holistic approach to sustainable supply chain management. Advanced multi‐objective optimisation models, for instance, could have provided decision‐makers with a balanced perspective on the trade‐offs between short‐term profitability and long‐term resource stewardship.
Implications for the Supply Chain Resilience in Post-COVID-19
In other words, the min–max regret is a decision-making approach that seeks to minimise the maximum deviation between a solution’s value and the optimal value of the equivalent scenario, without being overly conservative (Aissi et al., 2009). The COVID-19 pandemic has significantly impacted the development of risk management tools and resilience strategies. This is due to the environmental uncertainty that companies have faced, resulting in changes to rules and regulations.
CVaR is widely acknowledged as a more effective risk metric in comparison to VaR (Kisiala, 2015). Eligibility is considered a desirable characteristic for a risk measure as it enables the comparison of competitive forecasting methods. However, as established, the joint eligibility concept has addressed the issue of the absence of eligibility for CVaR (Asimit et al., 2017). The utilisation of robust optimisation in CVaR-based decision-making processes is more robust compared to statistical approaches. This can be attributed to the fact that CVaR considers a portion of the tail risk, in contrast to VaR.
Sustainability Has Become Operational, Not Aspirational
- To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans.
- Our final partition yielded a modularity value of 0.506, falling well within Newman and Girvan’s (Newman & Girvan, 2004) commonly cited “good clustering” range of 0.3 to 0.7.
- Supporting workers in the supply chain is crucial for maintaining stability and resilience, especially during and after disruptions like the COVID-19 pandemic.
- The market is estimated to reach USD 12.4 Billion by 2026 and USD 21.3 Billion by 2036, growing at a CAGR of 5.6% during the forecast period.
- Despite this substantial progress, areas of vulnerability in the ecosystem remain, and additional work is needed to maintain this momentum and secure key areas of the chip supply chain.
Automation, predictive analytics, collaboration tools, AI, and ML can all be used to raise the efficiency and effectiveness of the supply chain management process, which the relations among keywords emphasise in this statement. By implementing these technologies, businesses can gain a competitive advantage and achieve more successful outcomes (Gunasekaran et al., 2017b). This shift reflects the growing recognition that supply chains are deeply interconnected systems in which ecological, social, and financial outcomes reinforce or inhibit one another (Laosirihongthong et al., 2020). Managers and decision-makers are now called upon to engage with diverse stakeholders, extend beyond conventional organisational boundaries, and emphasise both transparency and risk management (Giannakis & Papadopoulos, 2016; Reshad et al., 2023). Where decisions about sourcing, production, or logistics were once guided by cost savings alone, they must now also weigh labour rights and broader societal implications (Castre-de Chabot et al., 2024).
- For example, changes in weather, economic conditions, or political systems (Shahbazi et al., 2021; Zhang et al., 2019).
- DRO models offer a safeguard against the worst-case anticipated cost, albeit at the cost of elevated expected cost in scenarios where the estimated probabilities are accurate (Ash et al., 2022).
- Companies may also need to split capacity across more factories within a country for specific SKUs and to source components from multiple suppliers.
- Cyberattacks may also be used to disrupt transportation and logistics, damage critical infrastructure, steal intellectual property, create counterfeit products or perpetuate financial fraud.
KPMG has market-leading alliances with many of the world’s leading software and services vendors. Businesses can make everyday processes easier to manage via streamlined purchasing features like Guided Buying (a Prime Business feature), which standardizes procurement policies across teams. Shared purchasing workflows and approval paths also help departments work together more efficiently.
Automotive and aerospace manufacturers are already adopting this approach to reduce cost. JVs can also serve as strategic tools for managing geopolitical risk, particularly for Chinese firms seeking access to Western markets. Some Chinese automakers, for example, have formed joint ventures with automakers based in Europe to supply core components for both companies’ brands or for other OEMs.