Supply chain disruption has become more than just industry talk—it’s a daily reality that impacts the way businesses operate. Whether the problem stems from the inability to get raw materials, slow or failed transportation, or missing delivery windows, these challenges ripple through the entire business landscape and can wreak havoc on profits.
The most common causes of supply chain disruption include natural disasters, supplier bankruptcies, trade policy changes, geopolitical conflicts, disease outbreaks and other unpredictable events. But even a well-mapped supply chain can be impacted by these unexpected challenges.
For example, a sudden shortage of raw materials can cause production delays or product cost increases. And when a company can’t source what it needs, it may decide to reduce production capacity or even stop operations altogether. This often leads to job loss and a hit on consumer confidence and spending. And it can also affect a company’s ability to capitalize on first-mover advantages and innovate in its market.
Long-term supply chain disruptions can have even more significant effects. For instance, a lack of resources can lead to the development of unethical practices. Unexpected disruptive events force firms in the supply chain to make impromptu decisions that may not be ethical or fair to other parties, such as buying from an alternative supplier. For this reason, it’s important for companies to create a resilient supply network. This includes ensuring that they have access to the tools needed to react quickly to any situation—like real-time tracking, predictive analytics and automated workflows.
