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How to Improve Supply Chain Resilience


How to Improve Supply Chain Resilience

In this article, Carlos Castelán shares three methods that can improve supply chain resilience.

COVID-19 changed how retailers operates. In particular, it pushed consumers further online and slowed supply chains. The last point remains a huge focus, as hiccups in the supply chain pose large risks for retailers.

Of course, a pandemic is not the only way a supply chain can be impacted. It could be extreme weather, transport route blockages, and much more. All of this shows how important it is to improve supply chain resilience.

Here are three methods to improve supply chain resilience.

AI Technology for Supply Chain Forecasting

One of the most critical steps of supply chain management is forecasting potential difficulties. Trying to adapt to inventory shortages as they come is a quick path to a losing battle, especially with a projected 22% global growth of online sales by 2025.  This puts retailers in a position of needing to keep up with the rapid growth, which can be difficult using primarily human operations.

Let’s take a look at an example. Retailer “A” generally has a steady supply of their products coming in for the rate that they sell them. All of a sudden, there is an uptick in sales, leading to a shortage of inventory. If the product is complex, it will likely take some time to manufacture. This means that “A” could potentially run out of inventory because they had not considered the time frame it would take to get a rush order filled.

This is where the era of artificial intelligence (AI) can be a massive boon for retailers, whether big or small. Of course, AI has been used in many capacities over the past couple of decades, but it has significantly evolved. It is hard not to see articles about AI being used in a new way across the web. And this is only expected to grow, with AI projected to contribute up to $15.7 trillion to the global economy in 2030.

AI can become an incredible tool for retailers looking for more automated forecasting of supply chain management. It can monitor the entire chain, collect data, and predict shifts in demand to adjust inventory before a shortage or overstock.


Key points include:

  • Five areas where supply chain vulnerabilities show up
  • Flexibility in supply chain logistics
  • Automated forecasting


Read the full article, Supply Chain Resilience 101: 3 Innovative Strategies, on