Modern global business and supply chain management environments are highly integrated and dynamic, and therefore supply chain has evolved to a feasible approach to business continuity. Disruptions that the company may face can be man-made or as a result of natural calamities, which in one way or another affect the company’s operations.
Supply chain management by the Indian organisations:
For the business organisations in India where the supply chain may be long and many levels, then the incorporation of supply chain resilience is crucial to guarantee the desirable long term performance and sustainability in supply chain management.
Understanding Supply Chain Resilience
Supply chain flexibility pertains to the capacity of an organisation in dealing with threats, risks, and constraints falling under the supply chain. It’s not about having a contingency plan, but also about establishing a very resilient and agile supply chain that can perform even under tremendous conditions of stress.
When it comes to supply chain management in India, the concept of resilience refers to the capacity to respond promptly to any change of situation, including the necessity to reroute deliveries, change the pattern of supply sources, and adjust the capacity for production depending on the demand.
Supply Chain Management Resilience in continuity of business
Business continuity is therefore a management discipline that comprehensively aims at enabling a business to cope with and be operational during and after a crisis. Managing supply chain risks is another important factor of this because disruptions in the supply chain can put a stop to production procedures, slow down delivery processes, and finally affect customer satisfaction and revenues.
For instance, during the breakout of the COVID-19 pandemic, virtual supply chain risks in the Indian organisations were realised through lockdown measures, transport disruptions, as well as scarcity of human resources. Businesses such as Tata Motors therefore had to consider supply chain management and key supplier mapping and finding new logistic solutions so that production could continue despite these disruptions.
Approaches Finding Paths To Make Supply Chain More Robust
Diversify Suppliers:
Services that take their components from a single supplier could be very costly. The spread of disruptions can also be handled by adopting diverse suppliers for a given business. For example, Maruti Suzuki, being the largest car manufacturing company in India, includes supply from a number of suppliers in different geographic locations so that if an incident in one area is disrupting the supply chain throughout the organisation, the other part will still continue to supply the chain.
Strengthen Supplier Relationships:
In general, one has to maintain very good relations with the suppliers in order to be able to adjust and cooperate during a crisis. Cited examples include Dabur – an Indian fast-moving consumer goods company – that has developed long-standing relationships with its suppliers: this helped to modify the supply chain in response to the growth of demand for health and hygiene products during the pandemic.
Invest in Technology:
It is, therefore, important that the supply chain adopts advanced technology to increase its armour against unfavourable changes in the market. This means that the adoption, for instance, of digital tools for monitoring, demand forecasting, and inventory can support businesses better in responding to shocks. India’s leading e-tailer, Flipkart, relies on a wide range of technologies, from advanced analytics to AI, to track and mitigate supply chain risks in real-time.
Develop Contingency Plans:
Therefore, having a good contingency plan is very important, especially when there are challenges that hinder the progress of project implementation. This involves; Risk assessment, determination of contingency plans, as well as planning for action that should be undertaken should a disruption occur. For instance, Reliance Retail has contingency plans that enable them to shift to another supplier or distribution method in the event the original ones are cut off or restricted.
Focus on Local Sourcing:
Diversifying an organisation’s sources of procurement can also be a way of increasing its agreed-upon proficiency; the use of locally produced commodities makes it less reliant on other countries. ITC Limited for instance, one of India’s largest diversified conglomerates, had to source from local markets, due to the disruptions in the international markets during the period of lockdown.
Conclusion
So if the environment is unpredictable, supply chain resilience is not a luxury but must be considered vital as survival is at stake. Thus, if the Indian companies ensure sourcing of supplies from multiple sources, establish healthy business relationships with the suppliers, increase their investment in technology, create supply chain backup plans, and aim at procuring from local suppliers, the businesses would be in a position to create a strong supply chain which could not only run the business in case of any delay but also experience phenomenal growth in case of favourable conditions.
Because the supply chain is going to remain a relatively unpredictable environment to manage, the firms that pay enough attention to the question of business continuity in the course of their strategic planning will be better prepared for the future.
