Global operations are all well and good in stable times, when just-in-time makes all the sense in the world. But unexpected changes like commodity price gyrations or natural disasters are rather good at highlighting the hidden constraints and vulnerabilities within many companies’ operations.
Suffice it to say that supply chains—and, to some extent, manufacturing operations—are not as dynamic as they need to be. And by its very nature, supply chain integration means that a supply chain can be only as good as its weakest link.
Now, in this period of permanent volatility, many executives are questioning whether things have gone too far. Fully 70 percent of executives who responded to a recent Accenture survey said they were dissatisfied with their organizations’ ability to predict future performance amid today’s market volatility. And more than 80 percent expressed deep concern about the resilience of their supply chain.