International Journal of Management

Global supply chains have enabled remarkable efficiencies and innovations—but they are also exposed to a growing array of disruptions, from pandemics and geopolitical shocks to climate-related disasters^[1][2]. The COVID-19 pandemic, Russia-Ukraine conflict, and rising trade barriers have made supply chain resilience a boardroom and policy priority. Resilience is now defined not only as the ability to recover from disruptions, but also to anticipate, adapt, and transform operations as new challenges emerge^[1][3].

Defining Supply Chain Resilience

Supply chain resilience is the ability of a supply network to prepare for, respond to, and recover from unforeseen disruptions, ideally maintaining continuity of operations and protecting value^[1]. This covers:

• Returning to normal operations after a shock.
• Adapting to new conditions.
• Learning from crises to strengthen future responses^[1][2].

Common threats include natural disasters, pandemics, cyberattacks, raw material shortages, political tensions, and economic downturns^[2][3].

The COVID-19 Pandemic

COVID-19 exposed systemic weaknesses: lockdowns, demand swings, labor shortages, and limited transportation upended production and shipping flows^[4][5]. Companies struggled with port congestion, delayed shipments, and inventory shortages across every sector, from electronics and pharmaceuticals to food and raw materials^[4].

• 86% of industrial manufacturers reported efforts to de-risk supply chains since 2022^[6].
• Semiconductor, automotive, consumer goods, and medical supply chains were among the hardest hit^[4][5].

Geopolitical Shocks

Sanctions, tariffs, and conflict—such as Russia’s invasion of Ukraine—have affected fuel costs, trade routes, and supply continuity, particularly in food, metals, and energy markets^[7][5].

• Example: U.S. and European tariffs on some Chinese imports in 2024–25 forced businesses to find alternate sources, shifting trade flows and costs^[2][6].

Environmental Disasters

Wildfires, floods, and extreme weather increasingly disrupt transport, sourcing, and production—requiring supply chains to plan for more frequent and severe events^[8][9].

Key Trends: The Pressure to Build Resilient Supply Chains

Recent data illustrates a shift:

• Diversification: Firms are seeking suppliers in different regions. 57% of industrial companies in China pursued a “supplier +1” strategy by 2025^[10].
• Reshoring/Nearshoring: U.S. trade share with China fell from 21.2% (2018) to 13.9% (2023), while Mexico became its top trading partner^[6].

Global Supply Chain Disruption Index (2021-2025 Estimate)

Resilience Strategies: Frameworks and Practices

1. Diversify the Supply Base

Reliance on one source, supplier, or transport route creates risk. Multi-sourcing and geographic diversification reduce potential chokepoints^[10][11].

• Apple’s recent expansion into India, Vietnam, and beyond has helped minimize disruptions in electronics production^[10].

2. Map and Monitor the Supply Chain

Comprehensive mapping of suppliers, logistics flows, and dependencies helps companies identify vulnerabilities before disaster strikes^[11].

• Real-time tracking and the integration of IoT and big data analytics enhance visibility and risk prediction^[12][11].

3. Build Alternative Routes and Capacities

Establishing backup routes, logistics partners, and inventory buffers provides flexibility when primary channels are blocked by events like port closures or pandemics^[8][11].

4. Collaborate and Build Strategic Partnerships

Sharing information and aligning strategies with key suppliers enables rapid response and collective risk mitigation^[8][12].

5. Scenario Planning and Stress Testing

Regular simulations and scenario analyses—“what if” exercises for pandemics or natural disasters—enhance preparedness and decision-making speed^[13][12].

6. Invest in Digital Solutions

Technologies such as ERP systems, advanced data analytics, and automated procurement platforms make adaptation and monitoring more efficient^[13][11].

Graph: Key Pillars of Supply Chain Resilience

• Diversification
• Transparency & Monitoring
• Flexibility & Redundancy
• Collaboration
• Digitalization & Data Integration

Lessons Learned from Recent Crises

• Importance of Agility: Companies that respond rapidly to disruptions—by rerouting shipments or finding alternate suppliers—reduce impact and maintain customer trust^[6][8].
• Balance Between Efficiency and Resilience: The pendulum has shifted from just-in-time and cost optimization toward increased inventory and supply redundancy^[6][11].
• Visibility Across Tiers: Upstream and downstream mapping reveals hidden risks beyond direct suppliers (e.g., tier-2 or tier-3)^[11].
• Planning for Polycrises: Geopolitical, environmental, and health risks may converge, requiring integrated, adaptable strategies^[3].

Challenges and Barriers

• Cost vs. Redundancy: Diversification and inventory buffers add expense; executives must justify resilience investments^[6][10].
• Complexity: Multi-sourcing and alternative logistics can complicate coordination^[10].

• Maersk: Implemented end-to-end risk monitoring, diversified logistics solutions, and proactive scenario planning for shippers, enabling operational continuity amid crises^[3].
• Apple: Reduced exposure by diversifying component suppliers and investing in new manufacturing bases^[10].

• Invest in supply chain mapping and digital risk-management platforms.
• Develop multi-sourcing and regional production strategies to reduce single-point vulnerabilities.
• Foster collaboration and data sharing with partners across all supply chain tiers.
• Conduct regular scenario-planning exercises and adjust policies as global dynamics evolve.
• Policy makers should support international cooperation, standardization, and investment in infrastructure and digital solutions^[1][3].

Building resilient global supply chains is no longer optional for businesses seeking sustainability, profitability, and competitiveness. As global crises become more frequent and interconnected, organizations must embrace holistic, technology-driven, and flexible approaches to anticipate, absorb, and recover from disruptions. The combination of strategic foresight, diversification, collaboration, and digital transformation is essential for thriving amid uncertainty^[1][2][3].