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The phrase “supply chain resilience” is getting thrown around a lot these days as companies work to fortify their domestic and global networks. They’re applying technology, people and new processes to the task, hoping that the end result will be a stronger, more agile supply chain that can withstand disruption and recover quickly when something goes wrong.
The strategies vary by company, but some of the more common moves include developing tighter relationships with key suppliers, investing in better visibility and shoring up the financial aspects of running a global network. Many organizations are also monitoring severe weather, cybersecurity threats and geopolitical risks more closely so they can respond faster amid shifting conditions.
“Building supply chain resilience has become a strategic priority for businesses worldwide,” Global Trade Magazine reports. “In this new era of uncertainty, flexibility, adaptability, and risk mitigation are more valuable than ever. Companies are rethinking their operations to create networks capable of withstanding shocks while maintaining efficiency and global competitiveness.”
What is Supply Chain Resilience?
IBM defines supply chain resilience as the “ability to anticipate, adapt and recover from disruptions, such as natural disasters, pandemics or other unexpected events,” but it doesn’t take a global pandemic to throw these critical networks off-balance. It can be as simple as a factory fire that halts production at a sole-source supplier, or a disgruntled employee who steals and sells sensitive files, triggering operational and reputational fallout across multiple tiers of the network.
If 2026 is the “year of resilience” for your company’s supply chain, here are five practical steps leaders can take now to reduce risk, spot vulnerabilities early and recover faster if and when disruption occurs:
- Shore up your working capital. If your business sells products or services to a larger buyer, J.P. Morgan recommends asking that company about its supply chain finance program. These buyer-led, bank-funded early payment programs help suppliers accelerate payments on their buyer-approved invoices maturing in the future. “While large companies commonly offer supply chain finance, midsize businesses can also establish these programs to provide suppliers fast payment while maintaining credit reserves,” J.P. Morgan explains. Accounts receivable financing is another option. “When customers don’t offer supply chain finance, consider receivables financing, which allows suppliers to sell invoices for upfront payment.”
- Invest in your supplier relationships. Know which of your suppliers are business-critical and establish a supplier relationship management strategy to build strong, collaborative ties that create joint value. Effective supplier relationship management helps companies operate more efficiently when times are good, and can also be invaluable during disruptions. “Businesses with strong supplier relationship management monitor important suppliers’ health to prevent costly delays,” J.P. Morgan points out. “They implement practices that keep suppliers financially healthy and stable, including balanced payment terms and development initiatives.”
- Get engineering teams thinking about alternative components. If you’re selling products that incorporate PCBAs (i.e., circuit boards), Designworks’ Ryan Gray says you should be aware that the components on those boards can go obsolete with little or no warning. The solution? Have your engineering or product development teams identify alternative components in alternative design files and alternative bills of material. “That way, when something does reach EOL (end of life), you'll be able to quickly and confidently direct your production teams to source the alternative,” Gray tells Forbes.
- Monitor industry trends and market shifts. Keep close tabs on what’s happening both in and out of your industry and marketplace. Though that may seem obvious, factors can change suddenly, and understanding how these shifts will impact supply or demand is not always simple to determine. “Collecting and analyzing the right data and insights is the first step to effectively monitoring industry trends and market changes,” NetSuite recommends. “Taking into account quick or unexpected changes in economic conditions, geopolitical situations, weather forecasts, or competitors’ moves that can disrupt supply chains is also important.”
- Implement inventory and capacity buffers. This will help minimize supply chain disruption and ensure operational continuity even when challenges arise. “Inventory buffers, also called safety stock, are extra volumes of inventory kept on hand to deal with sudden increases in demand or supply chain issues,” NetSuite explains. “Companies can analyze demand patterns and monitor existing inventory levels to project future variability and optimize the levels of additional inventory to keep in stock.”
