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Supply Chain Disruption: Key Strategies for CSCOs
Supply chain disruption is inevitable. Be prepared.
Over the past several years, supply chain leaders have been beset by one disruption after another, including global wars, climate change events, energy shortages and hybrid work.
To help leaders comprehensively react to major supply chain disruptions, Gartner has assembled a three-piece toolkit, comprising:
3 Key Actions for Navigating Geopolitical Supply Chain Risks
List of 14 Tactics to Counteract Supply Instability
Managing Supply Chain Resource Constraints
Download the toolkit to start mitigating supply chain disruption.
Supply chain disruption is constant and impactful
Supply chain disruption is omnipresent and unpredictable. Disruptions can stem from natural disasters, pandemics, political instability, economic upheaval, cyberattacks, supplier threats and rapid changes in consumer demand. What differentiates great CSCOs is how they turn these supply chain disruptions into legacy-defining moments to secure the future supply chain.
The key question is: Can you mitigate the next global supply chain disruption?
Insights and guidance for managing common supply chain disruptions
Raw material shortage
Many CSCOs are shifting from a global to a regional supply chain model in response to trade barriers and calls to localize manufacturing. Download “A New Role for CSCOs in Supply Sourcing” to learn how top supply chains are building supply sourcing strategies for resilience and agility.
Raw material price inflation
Balance efficiency with flexibility and agility. Download “Measuring Supply Chain Agility: The How and the Why” to learn how to measure, manage and improve your supply chain agility – a critical investment to mitigate risk and succeed in today’s disruptive environment.
Logistics capacity shortage
B2B logistics is struggling to meet growing customer expectations for last-mile delivery. To succeed, it’s important to understand that customers expect excellence across many aspects of last mile (not just speed). Download “3 Logistics Transformations Needed for Better Last-Mile Delivery” to learn how to optimize last-mile delivery – a key driver of customer satisfaction, recommendation and repurchase decisions.
Global labor shortage
With employee turnover inevitable, leading organizations are reimagining supply chain talent strategies to translate turnover into a competitive advantage. Download the “Embrace Supply Chain Turnover” report to get fresh ideas for improving talent mobility and reducing disruption after employees depart.
High inflation and recession risk
Creating sustainable value is critical during times of economic uncertainty. Download the report “Supply Chain Response to High Inflation and Recession Risk” to explore the CSCO’s four leadership priorities.
Global energy crisis
Amid a global energy shortage and price surge, CSCOs must balance supply chain energy costs and supply security with their ambitious decarbonization goals. Download the “Supply Chain Management Amid an Energy Crisis” report to explore a three-pronged supply chain energy approach designed to mitigate escalating energy costs.
FAQ on supply chain disruption
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. These disruptions can be caused by natural disasters, pandemics, political instability, economic upheaval, cyberattacks or rapid changes in consumer demand. Such disruptions can lead to delays, increased costs and inefficiencies, impacting businesses and consumers alike.
How can CSCOs identify potential supply chain risks?
Chief supply chain officers (CSCOs) can identify potential supply chain risks by conducting risk assessments, analyzing historical data and monitoring global events. They should engage with suppliers to understand vulnerabilities; use technology like predictive analytics and AI to forecast disruptions; and regularly review and update risk management plans. Collaborating with cross-functional teams and staying informed about industry trends can help CSCOs proactively address potential risks.
What actions can be taken during a supply chain disruption?
During a supply chain disruption, immediate actions should include the following:
Assess the impact on operations, communicating transparently with stakeholders and activating contingency plans.
Prioritize critical supplies and identify alternative suppliers or routes.
Use real-time data to make informed decisions and adjust inventory levels.
Collaborate with cross-functional teams to ensure coordinated efforts.
Communicate with customers and partners on the situation and expected timelines for resolution.