Building a Resilient Supply Chain: Lessons from Recent Disruptions

From pandemics to geopolitical conflicts to climate events, the past five years have been a masterclass in supply chain vulnerability. Organizations that invested in resilience before these disruptions hit were able to adapt faster and recover more completely than their peers.

Diversification Is Non-Negotiable

Single-source strategies that optimize for cost are giving way to multi-source approaches that balance cost with resilience. Leading procurement teams now maintain at least two qualified suppliers for every critical category, with geographic diversification as a key criterion.

Visibility Beyond Tier 1

Understanding your direct suppliers is no longer sufficient. Procurement teams need visibility into tier 2 and tier 3 suppliers to identify hidden concentration risks. Supply chain mapping technologies are making this possible at scale for the first time.

Scenario Planning as a Core Competency

The best procurement organizations run regular scenario planning exercises, stress-testing their supply chains against a range of disruption types. This practice turns risk management from a periodic audit into a continuous capability.