Building resilient supply chains in a volatile world
Global supply chains are the backbone of modern manufacturing, connecting the dots from raw materials to finished products. However, this interconnectedness brings about complexity and vulnerability. Products like mobile phones, which rely on materials such as aluminum, silicone, arsenic, and tantalum, highlight the intricacies of global sourcing.
Supply chains today are often fragmented, with numerous suppliers and production sites spread across the globe. This fragmentation makes them susceptible to disruptions from political uncertainties, trade disputes, and other external factors. Industries like semiconductors, communication equipment, medical devices, pharmaceuticals, and aerospace are particularly exposed to these risks.
Unplanned downtimes are a common consequence of supply chain disruptions, with 85% of organizations reporting regular occurrences. These downtimes not only delay customer deliveries but also inflate costs and damage the company’s reputation. In fact, 53% of companies experience revenue and productivity losses due to these interruptions, along with potential long-term impacts such as loss of market share and customer trust.
To counter these challenges, enhancing supply chain resiliency is crucial. Companies are now focusing on sustainability, digital transformation, and innovative sourcing strategies. Digital tools offer transparency, efficiency, and cost reduction, enabling a more agile and adaptable supply chain.
Siemens is at the forefront of this transformation, integrating supply chain considerations from the initial product design stage (see also “The shift-left logistics imperative”). By incorporating cost and carbon footprint calculations early on, we help companies make informed decisions that balance cost, risk, and sustainability. This approach ensures that supply chains are not only resilient but also contribute to long-term business success and environmental responsibility.
