Supply chain resilience

Deloitte partners Jim Kilpatrick, Global Supply Chain & Network Operations leader, and Roxana Greszta, National Organizational Resilience leader, speak about the importance of supply chain resilience and understanding the components that are essential for building resilience.

The supply chain, like business itself, is a vast and complicated network. Organizations can source products from suppliers, who might obtain materials or components from others, who in turn might get theirs from another vendor.

When one part of this network is exposed to risk, all parts are vulnerable to disruption. The growing complexity of these connections is driving a need for a deeper understanding of how supply chains can operate most efficiently while managing risk. According to almost half of the respondents to Deloitte’s 2020 third-party risk management global survey, the financial impact on them of a failure by a third party or subcontractor has at least doubled over the past five years. One in five respondents believe the financial impact has multiplied tenfold.

The good news: there are steps businesses can take to lead, navigate, disrupt, and ultimately cultivate resilience in their supply chains. This translates to anticipating, reacting, and recovering from the unexpected in a better way. By focusing on building supply-chain resilience as part of their risk management strategy, they enable their organization to transform its view of risk to create value rather, than just manage the risk.

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