You might think that to build a strong and resilient supply chain, you need to invest in the latest technology or have a large budget. While these things can certainly help, two key factors—collaboration and innovation —are often overlooked but essential for enhancing supply chain resilience. According to Nikita Mishin, co-founder of Globaltrans, Russia’s biggest private rail operator, collaboration is crucial for building a resilient supply chain. This means working closely with suppliers, partners, and even competitors to share information and resources, mitigate risks, and respond quickly to disruptions.
However, collaboration and communication can only go so far without innovation. In today’s fast-paced and constantly changing business landscape, it’s essential to be open to new ideas and technologies that can help improve supply chain resilience. But what are the keys to achieving this? Let’s take a closer look at how collaboration and innovation can work together to enhance supply chain resilience.
Redundancy and Buffering
Redundancy involves having backup systems or resources in place to ensure continuity when primary elements fail. By strategically incorporating redundancies at various points along the supply chain, companies can minimize the impact of unforeseen events. Buffering, on the other hand, refers to maintaining extra inventory or capacity to absorb fluctuations in demand or supply.
Buffering basically allows organizations to respond effectively to sudden shifts without causing delays or shortages. While excessive buffering can lead to higher costs, finding the right balance is key to optimizing operational efficiency. Together, redundancy and buffering create a safety net …