This is a summary of the book titled “Strong Supply Chains Through Resilient Operations” written by Suketu Gandhi, Marc Lakner, Sherri He, Tiffany Hickerson, and Michael F. Strohmer and published by Wiley in 2023. The authors make a case against the cost trimming  and lean-and-mean making of supply chains because the world is becoming more volatile, with geopolitical tensions, social unrest, and extreme weather. Instead, they ask that the supply chains be more resilient and flexible and propose a comprehensive program to do so. Case in point is the early 2020s when COVID struck, and operations needed to tackle a range of threats. By encouraging suppliers to be partners, positioning customer value as the key driver, cultivating a resilient workforce, revolutionizing with innovative technology, and a sustainability strategy, businesses can make their supply chain resilient to anything the world throws at them.

Supply-chain resilience is crucial in today's volatile, uncertain, complex, and ambiguous (VUCA) environment. Companies must prepare their operations for potential threats by restructuring their brittle supply chains to bend instead of breaking. In today's VUCA environment, businesses must adapt their strategies to new circumstances. To build resilient operations, businesses should prioritize a holistic view of their operations, including product planning, consumer research, manufacturing, and logistics.

To establish a relationship with suppliers, work together to establish a mutually beneficial relationship. Share goals and discuss how their work aligns with those goals. Encourage suppliers to cultivate similar relationships to build a network capable of providing early warnings about supply interruptions.

Reduce dependence on a single source and seek quality alternative suppliers as backups. Maximize value from suppliers and ensure everyone in the company understands the entire value chain.

Fast-fashion companies like Zara and H&M disrupted the traditional fashion industry by focusing on customer value and releasing new products continually. This approach allows them to adapt to changing customer attitudes and tackles issues like cost, sustainability, and shifting supply-demand profiles. To cultivate resilience, simplify your product portfolio, gather feedback, and use data analytics to understand customer preferences. The growth of e-commerce offers new opportunities for delivering products, but companies should be aware that customers may not be concerned about quick delivery for every product.

During the COVID pandemic, companies experimented with multichannel operations, such as online sales and home delivery. To set up an omnichannel operation, gather and analyze relevant data, consider last-mile options, and consider last-mile options like delivery or customer pickups.

Cultivate a resilient workforce by valuing diversity, promoting open communication, and offering a vision that aligns with personal values. This approach helps teams work harder, thrive in a fast-changing environment, and contribute to a positive culture.

Companies today recognize the importance of a diverse workforce for producing original ideas. However, this requires more than just hiring people from diverse backgrounds. Companies should focus on building resilience through "economies of skill" by implementing strategies such as outcome-based work, leveraging global expertise, promoting perennial learning, planning for future skills, and revolutionizing the supply chain with innovative technology. This includes using the Internet of Things, advanced robotics, wearable tech, and 3D printers to monitor operations and predict problems. A culture of continual learning is essential for employees to handle crises, adapt to customer preferences, and make the most of innovations. A sustainability strategy is also crucial for resilience, as stakeholders are increasingly aware of environmental, social, and governance (ESG) issues. Customers are willing to pay more for sustainable products, and employees worry about the environmental consequences of unsustainable practices. Sustainability is now a strategic advantage, as it can be framed as a way of minimizing waste.

Resilience is crucial in any future scenario, as it allows businesses to withstand risks and maintain a stable state. Key elements of resilience include transparency, data analysis, customer value, a proactive attitude, and the right people. These elements help businesses understand their operations, make informed decisions, and adapt to changes in the market. By empowering their employees with purpose, businesses can ensure a smooth transition and thrive in the future.

#Codingexercise: CodingExercise-11-27-2024.docx