by Darrell Rigby, Hernan Saenz, and Peter Guarraia


Realizing that their supply chains cannot be made totally immune to disruptions, a number of automakers have adopted a number of strategies to protect their businesses. They include: delivering a “good enough” product to consumers, developing better systems for monitoring the supply chain nodes that matter most, resisting the urge to centralize decision-making for supply chain issues, identifying pragmatic ways to ensure supplies of crucial resources, and turning scarcity into a virtue by turning the inventory problem into a business opportunity.

As the frequency and magnitude of supply chain disruptions continue to grow, it would be understandable if business leaders’ first instinct is to respond by trying to correct every single flaw or mistake, no matter what it takes, so each disruption never happens again. But it’s becoming increasingly clear that a 100% resilient supply chain is unattainable. Rather, pragmatism and adaptability are proving far more effective.


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