Lisa Anderson, MBA, CSCP, CLTD, and President of LMA Consulting Group Inc., has stressed the pressing need for companies to address weaknesses in their supply chains amid growing global instability.
Recent attacks in the Middle East, where hundreds of communication devices used by Iran-backed Hezbollah were destroyed in Lebanon and Syria, have highlighted the severe risks that global supply chains now face. These attacks, according to reports, are part of a broader wave of disruptions affecting supply chains worldwide.
Anderson commented: “As we’ve seen with the recent incidents in the Middle East, global supply chains are more vulnerable than ever. Interdiction operations – where goods are intercepted and tampered with – are becoming increasingly common, posing significant risks to businesses across industries. It is crucial for companies to shift from reactive to proactive strategies to protect their supply chains from these emerging threats.”
She pointed out the need for businesses to conduct immediate assessments of their supply chains, especially focusing on suppliers in politically unstable regions. To mitigate risks, she advised that companies should secure alternative sources of supply and consider strategies such as friendshoring and reshoring. Anderson warned of the ongoing threat posed by cyberattacks and further disruptions from geopolitical forces, particularly China, urging companies to remain agile, diversify supply bases, and form strategic alliances to ensure resilience.
LMA Consulting Group has recommended several short-term actions to help businesses tackle these challenges, such as sourcing new suppliers in more politically stable regions, securing backup supply chains, and formalising strategic partnerships. Additionally, long-term strategies like reshoring and expanding manufacturing capacity are crucial for building stronger, more resilient supply chains.
Anderson also emphasised the value of adopting a Sales, Inventory, and Operations Planning (SIOP) process to stay ahead of shifting conditions. Her widely recognised SIOP ebook outlines how the process can help companies better predict demand, secure critical supplies, and reduce the impact of disruptions.
She added: “As we discuss in our recently published special report, FutureScape: Crafting Tomorrow’s Supply Chain Today, businesses must prepare for heightened risks. Forward-thinking companies that take proactive steps to fortify their supply chains will be the ones that thrive in this volatile environment.”
By taking these measures, Anderson believes that businesses can build more resilient supply chains, capable of withstanding the complex and evolving challenges posed by today’s global landscape.
Originally published in Procurement Pro, 28 Sept 2024