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Why Do Businesses Need Supply Chain Resilience?

Nawarat Wannusen
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After the unexpected global COVID-19 crisis, every business, big and small, faced disruptions to its supply chain. Numerous challenges and rapid changes in production and shipping caused entrepreneurs to look for more adaptable and practical solutions to keep their businesses operating smoothly.

SCG International, an international supply chain solutions provider, stood by its partners through the crisis, helping to change their way of thinking and manage the supply chain to be more flexible. With that new way of thinking and operating, many of those businesses are now able to adapt to any unexpected situation and weather a crisis.

What Is Supply Chain Resilience?

As we all know, the world faced a severe COVID-19 pandemic in 2020. Many cities worldwide were on lockdown, people were not allowed to leave their homes; and as a result, consumer behavior has changed, affecting product distribution with a 149% increase in online shopping on the previous year.

In addition to product distribution, there were also difficulties with raw material procurement from suppliers due to the reduction in international shipping and more dependence on domestic products. Countries that export agricultural products, Thailand included, had to deal with oversupply that couldn’t be distributed as usual. Resilient supply chain management, therefore, was implemented in response to this change to help re-stabilize the supply chain.

A resilient supply chain is the degree to which businesses can quickly respond to unexpected disruptions through flexible planning and forecasting, from the process of raw material procurement and logistical planning to the delivery of products to consumers. It changes a business’s mindset to be more adaptive, exploring alternatives and systematically connecting the operation to solve problems in a timely manner.

Why Supply Chain Resilience Matters to Businesses Today

The advantages of supply chain resilience include the following:

  • Mitigates the negative impacts of crises and stops business operation stasis

  • It enables businesses to continue their production and deliver products to customers seamlessly and create consistent and coherent action plans

  • Reduces operational costs by incorporating technology to help analyze, plan, and make data-driven decisions

  • Minimizes waste in the supply chain through effective planning based on existing data, reducing wastage and the negative impact on the environment

  • Drives customer satisfaction and builds the reputation of the organization as a potential and credible partner

The Role of Technology

Shifting to a resilient supply chain effectively requires technology and innovation, such as:

  • AI (Artificial Intelligence): It helps process and analyze big data, trends, demands, and other factors.

  • Machine Learning: It learns and explores patterns of supply chain data to find the best operational strategy possible.

  • Industrial Internet of Things (IIoT): It connects devices and operates via a network, allowing it to work seamlessly. AI will quickly analyze and interpret incoming data and automatically make an instant decision.

  • Robots and drones: They help accelerate the operation, and increase efficiency, accuracy, and safety since manual laborers are no longer required to work on dangerous tasks.

International Supply Chain Solutions
from SCG International

SCG International is a leading international end-to-end supply chain service provider that can increase the efficiency of your supply chain. We help minimize the risks of unpredictable circumstances to pave the way to supply chain success for our partners. We help you to prepare for any crisis in product and resource procurement by implementing these key principles:

  • Smarter sourcing from a vast supplier network: We have a diverse network of raw materials in more than 50 countries worldwide. This allows our partners to solve problems promptly during a crisis without affecting costs and production processes.

  • Risk mitigation through inspection: The quality of the product is regularly inspected to ensure it meets the standards set, so our partners can be assured they will receive quality products on time.

  • Worry-free logistics and inventory management: We facilitate document management related to the logistics system.

  • Tailored solutions for various industries: We provide partner-centric services by inquiring about your needs and tailoring our solutions.

  • Placing your business in the optimal location: This helps open new markets for our partners.

Resilience Supply Chain Case Study

SCG International, as a leading supply chain company in Asia, helps our partners create a resilient supply chain so they can be worry-free in the case of unexpected situations like export issues or natural disasters. We create Business Continuity Management (BCM) plans to support every situation.

We have over 40 years of experience providing global supply chain solutions. We are experienced in implementing resilient supply chain solutions to help our partners’ businesses run smoothly in any situation.

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