6 Steps to Greater Supply Chain Resiliency
As a new white paper reminds us, supply chains are “only as strong as their weakest link.” In 2020, many of those weak links became painfully obvious.
JLL (formerly known as Jones Lang LaSalle) offers advice on how to navigate future disruptions in its paper, “Mitigating Risks by Building Resilient Supply Chains.”
“With the COVID-19 pandemic causing massive disruptions to global economic activity and trade, now is the time for companies to put the spotlight on risk management and implement strategies to forge greater supply chain resilience,” JLL wrote. “This issue will not go away, because once COVID-19 has been overcome, attention will fall back again on the elevated supply chain risks associated with the global climate emergency.”
To help you prepare for future, the firm offers these strategies and best practices for your consideration:
- Consider supplier diversification and regionalization.
- And, while you’re at it, look into port diversification, too.
- Think: “Less ‘just in time’ and more ‘just in case’ inventory management.”
- Consider multimodal transportation options.
- Invest in automation.
- Periodically evaluate your supply chain network. Do any of its links looking iffy?
Wondering why JLL, a commercial real estate services company, cares about supply chains? Because, if organizations really are serious about resilience, JLL explained, then “this will generate some significant changes in the demand for and location of industrial and distribution facilities globally — with more sourcing closer to markets of consumption, higher levels of inventory across supply chains … more demand for facilities at intermodal or multimodal hubs, and higher levels of automation in both manufacturing and warehouse operations.”