Red Sea, Rebels and Resilience: Navigating Supply Chain Disruptions with IIMA Supply Chain & Logistics Management Programme

Disruptions are not new for the supply chain and logistics sector. Remember the 'Ever Given' container vessel that got stuck in the Suez Canal in 2021, halting all traffic through that crucial area for nearly a week? And over a decade ago, the surge of Somali piracy wreaked havoc on sea operations.

The recent attacks by Houthi rebels on commercial liners in the Red Sea have indeed led to significant disruptions in the maritime sector, impacting vessel movements along one of the world's busiest sea routes—the Suez Canal. Moreover, the ongoing drought affecting the Panama Canal further complicates global shipping routes.

These disruptions are likely to have far-reaching consequences on global trade, shipping and logistics, leading to significant trade losses. However, with the attacks in the Red Sea threatening to disrupt the global supply chain, professionals must reinvent their supply chain strategies to ensure agility and resilience in their operations.

The IIM Ahmedabad's 6-8-month Executive Programme in Supply Chain and Logistics Management (EPSCLM) equips professionals with the skills and knowledge to respond to disruptions and emerge as supply chain thinkers who can plan and strategize better.

Master Financial Acumen in Supply Chain Management?

Approximately 15% of the world's trade, valued at over US$ 1 trillion, passes through the Red Sea, a vital route for 30% of India's imports and 50% of exports. The ongoing crisis has placed significant financial strain on shippers due to rerouting, extended voyages, and increased fuel costs.

EPSCLM is designed to assist industry professionals by imparting essential financial skills. One crucial module, Supply Chain Finance, equips participants with practical knowledge for making informed financial decisions. This includes mastering the working capital cycle, optimising inventory levels, negotiating payment terms, implementing credit control, making informed decisions on cost-cutting and investments, and understanding hedging techniques.

Additionally, the programme covers Pricing and Revenue Management, teaching participants to analyse market dynamics, adapt pricing structures and negotiate rates for increased profitability. This holistic approach provides participants with the skills to not only mitigate costs but also find new avenues for financial resilience.

Prof. Debjit Roy, Faculty Chair, EPSCLM, sheds insightful light on this comprehensive learning journey.

Learn to Manage Disruptions with Data

You might need more than what you've always done in managing a crisis. You can find a new approach with data.

Whether historical or the latest market data, regularly monitoring and adopting data habits for effective decision-making has the potential to overcome any crisis. How? By understanding patterns, identifying risk factors and responding in real time to disruptions.

Supply chain professionals need to make split-second decisions and disruptions often occur without prior notice. The key to anticipating and mitigating future challenges lies in harnessing supply chain data. Leveraging data and predictive analytics enables a proactive approach to risk assessment, allowing supply chain professionals to address abrupt changes in demand, supply, transportation costs and other factors.?

The?Supply Chain Analytics?and?Data-driven Decisions?modules covered in?EPSCLM?give participants a data-driven edge in supply chain management, helping identify inefficiencies and take corrective actions. Participants will learn analytical tools and techniques to analyse vast datasets, extract actionable insights and plan their next strategic move to improve supply chain performance.

Study Cutting-edge Technology Integration

Time is a critical element in the supply chain and logistics, reflecting the efficiency of your strategies. How you manage it speaks volumes about your operational prowess. Leveraging technology is key to reducing inefficiencies and enhancing overall productivity.?

EPSCLM provides a strategic advantage by guiding participants to enhance competitiveness through the adoption of cutting-edge technologies, including Blockchain, Internet of Things (IoT), Automation/Robotics, and Industry 4.0.

In the face of the Red Sea crisis, where shipping routes are disrupted, these cutting-edge technologies can facilitate dynamic route optimisation, allowing logistics managers to quickly reroute vessels based on real-time data, thereby minimising delays and avoiding unexpected events.

In addition to addressing security and data integrity issues, Blockchain's transparency and traceability features enable the quick identification of affected shipments and the implementation of alternative routes. Through a focused Module on Blockchain, EPSCLM will explore this capability, allowing supply chain professionals to monitor any crisis and respond promptly to incidents, such as rerouting vessels away from affected areas.

Moreover, strategically deploying IoT-enabled devices such as sensors, RFID tags and GPS trackers across the supply chain can monitor the precise location and status of shipments in real-time. An in-depth module on IoT devices, sensors, and their applications lets you know the rightful application of these technologies.

Resilience in Supply Chains: A Strategic Imperative?

Like financial markets, supply chains are susceptible to fluctuations reverberating across industries and economies. According to the?BCI Supply Chain Resilience Report 2023, 23 distinct disruptions have been identified. Notably, cyber-attacks and data breaches, loss of talent/skills, adverse weather conditions, transport network disruptions, human illnesses, and new laws or regulations emerge as formidable challenges, underscoring the critical need for resilient strategies.

Disruptions are inevitable in the emerging complexities of global trade and their impacts can be profound. However, it's not just about reacting to disruptions but responding strategically and this is exactly what the?Executive Programme in Supply Chain and Logistics Management?empowers professionals to achieve. Are you ready to steer the course toward resilience and success? To start your application, click here.