How are supply chain strategies evolving in response to recent disruptions?
Regular disruptions to global supply chains, such as the blockage of the Suez Canal due to the Ever Given incident and tensions in the Middle East, have led to significant delays and increased transportation costs. In addition, international uncertainties have made the cost of raw materials very volatile amid strong global demand.
The sectors most affected by these disruptions share two commonalities: a heavy reliance on globalized supply chains and significant costs incurred in the event of delays or disruptions. These repeated disruptions have prompted industrial companies to shift from a “just in time” to a “just in case” approach to become more resilient.
For the construction industry In particular, these disruptions can have far-reaching consequences, as supply delays can result in financial penalties and sustained labor costs while workers wait for deliveries of necessary materials. According to a Hexagon study for Jovix, this waiting time represents 15% of the labor costs of a construction site, which can represent tens of millions of dollars on large-scale projects. As a result, the need for new solutions and technologies is crucial for businesses to combat delays and adapt to unforeseen circumstances.
What role does technology play in helping industrial companies navigate these uncertainties?
In a context of high uncertainty, technology can offer industrial organizations two advantages: predictability and adaptability. Throughout the supply chain, gaining the ability to adapt more quickly to unforeseen events has become crucial. Companies are increasingly turning to adaptive approaches such as hardware readiness that help create transparency on materials, optimize their availability based on when they are needed, and provide early warnings of disruptions. This allows for proactive adjustments rather than costly last-minute fixes and delays.
Another important capability offered by digital platforms concerns risk-based approaches. In capital projects, for example, an enterprise project performance platform can enable companies to capture, manage, visualize and communicate different levels of risks and optimize resource allocation based on them. . This improves project predictability and reduces the impact of unplanned changes. This also helps avoid embarking on high-risk and loss-making projects.
By addressing blind spots, data silos, and other “black boxes,” these methods enable businesses to adapt more quickly to a rapidly changing environment, whether dealing with business disruptions, the supply chain, adapt to new regulations or adapt to deglobalization measures.
Discover the latest edition of Digital Supply Chain and register for our global conference series – Procurement and supply chain LIVE 2025.
Digital Supply Chain is a BizClik brand.