The Blueprint for Resilience in Supply Chains
While the pressures of the pandemic have since alleviated, supply chains still face several vulnerabilities. As written in a piece for the World Economic Forum, “McKinsey says that supply chain disruptions lasting longer than a month now occur every 3.7 years on average, and that they can cost businesses up to 45% of a year’s profit over the course of a decade.” Alongside impacting business, such vulnerabilities can create an even wider economic effect. U.S. manufacturing contributes more than $2.65 trillion to the economy, making supply chain resilience an absolute must.
The Pursuit of Resilience
The understanding around the importance of supply chain resilience has been a motivating factor and continues to grow. According to Deloitte’s reporting, “The National Association of Manufacturers (NAM) Manufacturers’ Outlook Survey for the fourth quarter of 2023 revealed that, in the last two years, 86.2% of respondents have worked to de-risk their supply chains.” That pursuit has carried through today. In fact, the U.S. Senate’s Commerce, Science and Transportation Committee just passed legislation aimed at strengthening American supply chains.
Automation to Achieve Resilience
In order to meet the goal of establishing more resilient supply chains, companies have implemented a variety of strategies from diversifying sourcing to shortening the chain. But one of the key strategies has been shifting to digital tools. With the advancement of AI, operators have been able to better streamline processes and make more informed decisions. With GenAI, though, operators can dig even further into data and insights. In turn, it becomes easier to predict fluctuations, improve visibility into supply chains, and generate proactive plans. By having this access, supply chains and their management become much stronger and more efficient.
Sources:
● “Leveraging digital tools in the age of supply chain disruption” - Henadi Al Saleh, World Economic Forum
https://www.weforum.org/stories/2025/01/supply-chain-disruption-digital-winners-losers/
● “Legislation aimed at preventing supply chain disruptions passes Senate Commerce Committee” - by Liz Carey, Transportation Today News
● “Restructuring the supply base: Prioritizing a resilient, yet efficient supply chain” - Jim Kilpatrick, Lindsey Berckman, Alan D. Faver, Kate Hardin, and Matt Sloane, Deloitte
● “How Generative AI Is Shaping the Manufacturing Supply Chains of the Future” - Nishanth Vallabhu, Automation.com
https://www.automation.com/en-us/articles/january-2025/generative-ai-manufacturing-supply-chains