Preparing for the Unpredictable: Enhancing Supply Chain Resilience in Today’s World

In a rapidly evolving global landscape, supply chain resilience has become crucial for organisations aiming to maintain competitiveness and operational stability. We recently partnered with the Australian Food and Grocery Council (AFGC) to conduct a comprehensive survey examining current trends and challenges in the FMCG industry. The findings, published in our Supply Chain Survey Report, highlight the need to strengthen supply chains against disruptions and equip businesses with strategies to cope with unforeseen challenges.

Key Findings from the 2024 AFGC Supply Chain Survey

The survey report highlighted several pressing issues confronting the FMCG sector:

1. Rising Costs: A significant challenge across supply chains is the increasing cost of raw materials, freight, and logistics. Efficiency and cost reductions have thus emerged as top priorities for the coming year.
2. Environmental Challenges: Companies report a lack of readiness in addressing environmental challenges, emphasising the need for sustainable practices and climate change mitigation.
3. Significant Disruption Impacts: The sector continues to grapple with disruptions, notably those affecting international shipping, which have been exacerbated by recent geopolitical tensions.
4. Investment in Planning Systems and AI: Increased investment in planning systems and AI technologies is on the horizon, with a focus on enhancing supply chain visibility and responsiveness.
5. Talent Shortages: Workforce development, particularly in data analytics and AI, remains a critical area that needs immediate attention.

Global Trends and Their Impact

Globally, supply chains are experiencing heightened disruptions, with a 38% increase in recorded incidents in 2024 compared to the previous year. Key global trends include:

• Geopolitical Risks: Political instability and trade restrictions are posing significant barriers to supply chain stability.

• Environmental and Sustainability Concerns: CEOs are increasingly concerned about ESG violations within their supply chains.

• Cybersecurity Threats: Vulnerabilities to cyber threats and data breaches remain a critical concern.

• Financial and Operational Risks: Issues such as supplier insolvency, poor quality control, and labour shortages are affecting supply chain efficiency.

Transitioning from Risk to Resilience

To navigate these challenges, we need to shift our focus from simply identifying risks to actively building resilience. At Argon & Co, we recommend the following strategies:

1. Focus on Critical Functions: Identify and prioritise business-critical functions that will significantly impact operations during disruptions.
2. Develop Scenario Planning: Engage in scenario-based planning to mature risk identification into strategic responses.
3. Diversify Supply Sources: Mitigate risks by diversifying sourcing strategies, reducing reliance on high-risk suppliers.
4. Enhance Visibility and Agility: Leverage technology such as AI, IoT, and automation to increase visibility and collaboration across supply chains.

Preparing for the unpredictable requires a proactive approach. Our team is equipped with the expertise and insights to guide businesses through this transformation. Contact our experts today to discover tailored solutions that will enhance your supply chain’s resilience and readiness for the future.

View the full webinar recording here. Password: SC@&Ca4Gc