What is supply chain resilience?

Supply chain resilience refers to the capacity of a supply chain to anticipate, prepare for, respond to, and recover from disruptions while maintaining operational continuity. This involves the ability to adapt to unexpected events, such as natural disasters, economic shifts, or supply shortages, which can impact the flow of goods and services. Resilience encompasses strategies and practices that enable organizations to remain functional and recover quickly from such challenges.

While other aspects, such as operational cost reduction, effective communication among stakeholders, and delivery speed, contribute to a supply chain's overall efficiency, resilience specifically focuses on the adaptability to disruptions. It emphasizes not just maintaining normal operations under unexpected circumstances, but also ensuring that the supply chain can quickly bounce back to its previous state or find a new pathway to meet customer demands. This makes it a critical component for organizations aiming to thrive in an unpredictable environment.