Roadmap to Resiliency in 4 Steps

The supply chain is the lifeblood of an economy and the foundation for delivering vital goods and services to consumers. When this extraordinarily complex and interconnected system is disrupted, the ripple effects can be far-reaching and create a wide range of negative consequences.

Supply chains are fundamentally susceptible to interferences that can adversely impact operations on every level. While some minor interruptions are expected and easy to navigate, other major upheavals—economic, political, or disasters (both man-made and naturally occurring)—can generate insurmountable challenges. Undeniably, the unprecedented delays during the Covid-10 pandemic put a glaring spotlight on the fragility of the supply chain and exposed preexisting weaknesses.

A Roadmap to Resilience

What vital information have we learned from recent years? How does the industry minimize risks in the supply chain, avert potential threats, and prepare for the next major crisis so massive bottlenecks and catastrophic delays can be prevented?

Here are four valuable lessons we learned from the pandemic that could help alleviate major supply chain disruptions moving forward…                                                                                                                             

        1. Understanding the Importance of Multi-sourcing: In traditional outsourcing a single vendor handles all responsibilities/other company operations whereas multi-sourcing utilizes multiple vendors to get the job done. The benefits include:
          • Greater flexibility & bandwidth: Efficiently tackle unexpected events that may threaten capacity.
          • Reduce bottlenecks: More suppliers can meet peak demand.
          • Trusted backup plan: It is comforting to know if roadblocks occur, you are not reliant on only one vendor.
          • Increased innovation: Competition drives supply chain innovation and enhanced technology.
          • Smarter negotiations: Gain greater insights into which suppliers perform well—helps you make informed decisions and broker better deals.
        2. Building a Comprehensive Commodity Strategy: Supply chain resilience is often referred to as an organization’s ability to navigate unexpected disruptions with its existing capabilities. Building a comprehensive commodity strategy is a mandatory element because of it:
          • Fosters a detailed and thorough understanding of the entire supply base by commodity.
          • While curating additional supply sources, it might also be necessary to find a suitable substitute.
          • Allows for quantified management of the supply base through key performance metrics and cost controls.
        3. Recognizing the Inherent Value of Relationships: It is imperative to have strong relationships with a vast network of suppliers. Building and cultivating relationships must be a top priority each year. Tapping into your supplier network is critical, especially in emergency situations or times of distress—it can make or break your business and be the difference between thriving or just surviving. Remember, work with teams who have much larger networks than yourself. It is an asset to have additional resources you can utilize.                                                                               
        4. Shortening Supply Chains: Nearshoring is one way to help reduce lead times and the increased risk of overseas sourcing delays when supply chains are under stress. A shortened supply chain helps curb unpredictability, reduces energy costs, promotes sustainability, and  allows for local (or regional) suppliers to regain a competitive advantage.

The Road Ahead…

As we all experienced in recent years, when the supply chain is interrupted, the way we live and work, can be severely disrupted causing catastrophic results. Having a robust supply chain that stays efficient and intact—in the face of unexpected challenges—remains mission critical. To successfully navigate future obstacles, it is paramount that organizations are proactive (instead of reactive) and mindfully build and execute risk management strategies to both forecast and mitigate potential delays.

Kem Krest

Kem Krest, a certified minority business enterprise (MBE), is the nation’s leading provider of supply chain optimization solutions to automotive, powersports, and heavy-duty OEMs. Through our dedicated team members, lean operating system, and streamlined technology, Kem Krest ensures a resilient and uninterrupted supply chain for the programs we manage. Through customized end to end solutions that address every facet of the supply chain—from inventory management, fulfillment, warehousing, kitting, packaging, logistics, and transportation management, Kem Krest enables companies to increase operational efficiency, deliver superior customer and employee experiences, focus on growth initiatives, and achieve cost savings. Kem Krest partners with companies to virtualize their supply chains through a growing network of 12 facilities in the US and Canada, featuring 1.75M sq. ft. of warehouse space and 600+ full-time team members. For more information, please visit Kem Krest’s website at