Supply chain organizations often respond to disruption by dropping everything else, but there are better approaches.
- Gartner client? Log in for personalized search results.
Firefighting supply chain disruptions is important, but don’t depend on it
Forty-four percent of respondents to a recent Gartner survey of supply chain leaders admit to finding themselves in firefighting situations in response to medium- and high-impact disruptions. Moreover, over a third of supply chain organizations spend 30% or more of their time firefighting. While reacting quickly to supply chain disruptions is an important skill — and a sometimes inevitable response — planning leaders would be wise to actively focus on reducing their reliance on it.
As an already-constrained labor market coupled with evolving U.S. federal policy creates potential labor availability and cost risks for supply chain organizations, successful disruption management helps prevent employee fatigue and maintain morale. Use proactive supply chain disruption strategies to keep focus on long-term goals, promote increased cross-functional stakeholder engagement in sales and operations planning (S&OP) and create space to incorporate lessons that reduce the negative effects of disruption the next time around.
See Gartner research in action at our supply chain conferences and events.
Supply chain disruption is better handled with these proven methods
Advanced scenario planning, proactive measures, predefined policies, and information sharing through established channels and systems minimize firefighting in the event of disruption.
Prepare for supply chain disruption with advanced scenario planning
Based on scenario analysis, preidentify key thresholds or triggers that would indicate it’s time to switch plans.
Communicate potential scenarios and underlying assumptions consistently to relevant stakeholders.
Engage and collaborate with stakeholders within and outside of supply chain successfully to develop and analyze scenarios.
Focus as much on building a scenario-planning culture as on enabling technology.
Use proactive measures and policies to limit the impact of disruptions
While scenario planning plays a key role in how organizations identify risks and opportunities, many companies struggle to translate planning conversations into action. To effectively act when disruptions hit, take more proactive measures. These four questions help drive planning conversations that translate into action when disruption strikes:
Extract insights from past performance by asking, “Did we do what we said?”
Build a plan with a high probability of successful execution by asking, “Is our plan realistic?”
Align the plan to business objectives by asking, “Is our plan enough?”
Make decisions during the S&OP process by asking, “What can we do now?”
Predefined demand and supply policies (probabilities, options, ranges, guidelines and thresholds) based on uncertainty assessments in the midterm guide decision making and can even facilitate faster local decision making and responses to uncertainty.
Use existing channels to gather and share data
Gathering information through established channels and systems, such as the sales and operations execution (S&OE) process, helps drive forward-looking, planned responses to changes and volatility on the near-term horizon. Additionally, ensure a strong data foundation made up of not just historical but also external data to share relevant information using established channels and systems.
Supply chain disruption FAQs
What is supply chain disruption?
Supply chain disruption refers to unexpected events that interrupt the normal flow of goods and materials within a supply chain. Disruptions can lead to delays and increased costs and inefficiencies, impacting businesses and consumers alike.
A rise in disruptions to a complex supply chain overwhelms the supply chain risk management strategy and frequently require organizations to firefight. Chief supply chain officers must reduce the rate of disruption to their supply chains by reducing their surface areas, and they must obtain enterprise support to do so.
What are the causes of supply chain disruption?
Supply chain disruptions can arise from a variety of factors in today's complex and volatile environment. Here are some of the key causes of supply chain disruption:
Third-Party supplier failures: Disruptions often occur due to failures or issues with third-party suppliers, which can impact the entire supply chain.
Cyberattacks: Increasingly, cyber threats pose significant risks to supply chains, potentially leading to data breaches and operational halts.
Transport network disruptions: Extreme weather events, such as storms and floods, can severely disrupt transport networks, affecting the movement of goods.
Geopolitical tensions: Geopolitical issues encompass the political, economic and social dynamics between countries that can affect international relations and trade, such as tariffs.
Economic volatility: Fluctuations in the economy can lead to unpredictable demand and supply, complicating logistics and planning efforts.
Labor shortages: Labor availability and retention issues can hinder operations, especially in logistics and transportation sectors, leading to delays and inefficiencies.
Environmental factors: Natural disasters and climate change-related events can disrupt supply chains by affecting production and transportation routes.
Regulatory changes: Evolving regulations can impose new compliance requirements, which may disrupt established supply chain processes.
Technological failures: Dependence on technology means that failures in systems or data management can lead to significant disruptions in supply chain operations.
These factors highlight the complexity of modern supply chains and the need for organizations to develop robust risk management strategies to mitigate potential disruptions.
How can you prepare for and manage supply chain disruptions?
To effectively prepare for supply chain disruptions, leverage these 7 strategies:
1. Invest in scenario planning: Conduct regular scenario analysis and comprehensive risk assessments to anticipate disruptions and develop effective mitigation strategies.
2. Enhance supply chain visibility: Invest in technologies that give you real-time visibility into your supply chain, such as control towers, so you can make quick decisions and respond effectively to disruptions.
3. Strengthen resilience through redundancy: Maintain enough redundancies to respond effectively to disruptions, but be careful not to over-prepare for non-critical risks.
4. Develop a comprehensive risk management strategy: Develop a risk management playbook that outlines strategies for identifying, assessing and mitigating risks, along with clear communication plans for stakeholders.
5. Foster collaboration with partners: Establish open communication with your suppliers to share disruption data, provide proactive notifications and collaborate on risk mitigation strategies.
6. Utilize technology for agility: Invest in digital tools, such as advanced analytics and machine learning, to enable agile decision-making and enhance scenario planning in your supply chain operations.
7. Regularly review and update plans: Regularly conduct drills and simulations so your staff become familiar with disruption response procedures and can execute them effectively during real events.
By implementing these strategies, organizations can significantly enhance their preparedness for supply chain disruptions, ensuring they can respond effectively and maintain operational continuity in the face of uncertainty.
What actions can organizations take to avoid supply chain disruptions?
To avoid supply chain disruptions, enhance regulatory compliance by using regulatory intelligence software and recalibrating risk management. Strengthen supplier relationships through collaboration and diversification. Implement agile practices with business continuity frameworks and backup sites. Leverage technology for data analytics and digital solutions. Conduct regular risk assessments and foster a culture of agility. Align strategies with business goals and invest in resilience initiatives.
Attend a Conference
Experience Supply Chain conferences
With exclusive insight from Gartner experts on the latest trends, sessions curated for your role and unmatched peer networking, Gartner conferences help you accelerate your priorities.
2 – 3 Dec 2025
Gartner Supply Chain Planning Summit
Denver, CO
Drive stronger performance on your mission-critical priorities.