What does "supply chain resilience" mean?

"Supply chain resilience" refers to the capacity to adapt to disruptions while maintaining operations. This concept emphasizes the importance of having a supply chain that can withstand various challenges, such as natural disasters, economic shifts, or unexpected spikes in demand. A resilient supply chain ensures that even when faced with interruptions, it can quickly adjust its processes and continue delivering products or services to meet customer needs.

Being able to adapt means that organizations can identify alternative suppliers, reroute shipments, or modify production schedules in response to unforeseen events. This adaptability is crucial, especially in an increasingly complex and globalized supply chain environment, where risks are often unpredictable.

While avoiding disruptions is important, the essence of resilience is in the ability to respond effectively to those disruptions. Reducing supply chain costs and having effective logistics communication systems may contribute to the overall efficiency of supply chain management but do not encapsulate the core idea of resilience, which is focused on maintaining functionality despite challenges.