Training Our Suppliers for Resilience and Agility: Key Steps for Long-Term Succes

Since the disruptions brought on by COVID-19, I’ve been deeply drawn to the concepts of “Resilience” and “Agility.” These aren’t just buzzwords to me, they’re critical goals to strive for. Over the past two weeks, I’ve been sharing my reflections on these capabilities, which I believe are fundamental for any organization aiming to thrive in today’s unpredictable world. Resilience ensures our supply chain can recover quickly from setbacks, while agility enables us to quickly pivot and adapt to changing market conditions. Both attributes are essential for long-term success in an unpredictable world.

But it’s not enough for our internal processes to be resilient and agile, our suppliers need to be just as adaptable. After all, our suppliers are a vital part of our ecosystem, and their ability to respond to challenges directly impacts our collective success.

In this article, I dive deeper into how we can train suppliers for resilience and agility, ensuring that they can meet our business needs and grow alongside us in a rapidly changing environment. While this is not an exhaustive action plan, and I don't claim to be an expert, I hope these key steps provide valuable insights and spark meaningful discussions. Let’s dive in!

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Before we start training our suppliers, let’s clarify what resilience and agility mean for us.

? ???????????????????? is the ability to withstand and recover from disruptions. For suppliers, resilience might mean bouncing back quickly from unexpected delays, unforeseen disasters, or sudden demand changes without causing major issues in the supply chain. Think of resilience as our supply chain’s shock absorbers, it keeps us stable in a turbulent environment.

? ??????????????, on the other hand, is about adaptability and speed. An agile supplier can quickly and efficiently adjust to new market conditions, demand fluctuations, or changes in sourcing methods while maintaining quality and efficiency. Agility provides the flexibility to seize opportunities or tackle challenges in real time, such as rapidly scaling up production to meet a sudden surge in demand for a popular product.

Take the food industry as an example. During the pandemic, the food industry faced big challenges. As demand moved from restaurants to home delivery, resilient suppliers handled immediate problems like changing delivery routes in restricted areas and ensuring they had enough raw materials. Agile suppliers, on the other hand, quickly adjusted by repackaging products into smaller sizes for homes instead of large bulk packs for hotels and caterers. By combining resilience and agility, suppliers were able to keep up with changing customer needs and continue their services during uncertain times.

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Not every supplier will require the same level of training or engagement. We need to ensure we focus our efforts where they’ll have the most impact. Here’s how we can identify which suppliers to onboard for resilience and agility training:

??. ?????????????????????? ???? ?????? ????????????????????: This one is a no brainer. Identify the suppliers whose products or services are vital to our business. Any disruption with these suppliers could have severe consequences, so prioritizing their resilience and agility is crucial.

??. ?????????????????????? ??????????????: Review supplier past performance. Suppliers depicting patterns of delays, inconsistent deliveries, or inconsistent quality are prime candidates for additional support.

??. ???????? ????????????????: Evaluate suppliers based on their exposure to risk (such as geographic vulnerabilities, reliance on single-source suppliers, or operating in volatile industries). Other key risks include financial instability, dependence on scarce natural resources, or susceptibility to regulatory changes. Suppliers in high-risk zones or those facing these challenges are often prime candidates for resilience training, enabling them to better prepare for and recover from disruptions.

??. ?????????????????? ?????? ????????????: We should also consider suppliers who show growth potential but lack the tools to scale effectively. They are ideal candidates for agility training, especially if they are committed to improvement.

??. ?????????????????????????? ??????????????????????: This training will work best when suppliers are willing to work together. Those open to planning, sharing ideas, and improving processes are more likely to succeed in resilience and agility training. Their cooperation makes the training more effective and helps build stronger partnerships.

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Training our suppliers for resilience and agility is a partnership, not a one-sided exercise. There should be clear communication about expectations and the benefits of improving resilience and agility.

? ?????????????? ???????????? ??????????: Collaborating with suppliers helps identify shared objectives, like faster delivery times, better inventory management, or scalable processes during demand surges.

? ?????????????????? ????????: We should set measurable KPIs around on-time delivery, order flexibility, or even risk management plans. Clear, measurable targets help both parties track progress and stay focused on improvements.

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Supporting our suppliers with the right tools, resources, and training is essential for building resilience and agility. Here’s how to go about the same:

??. ???????????????????? ??????????????????????: We should introduce technologies that improve visibility, forecasting, and real-time tracking. For example, collaborative order tracking platforms can help suppliers monitor the supply chain and respond to changes proactively. For those with limited access to advanced tools, simple, cost-effective solutions like Excel-based tracking can also boost visibility and operational efficiency.

??. ???????? ???????????????????? ??????????????????: It is important to help suppliers refine their risk management strategies. Suppliers reliant on single sourcing can benefit from diversifying their supply base with backup suppliers to reduce vulnerabilities. Simple and practical contingency plans, such as alternative transportation methods or identifying fallback suppliers, can ensure preparedness for disruptions without requiring significant investments.

??. ???????????? ?????????? ????????????????????: Suppliers should be encouraged to enhance visibility in their supply chains. Real-time access to production schedules and inventory levels allows for quick response to disruptions or shifting demands. For smaller or resource-constrained suppliers, even basic practices like maintaining regular communication and simple inventory updates can significantly improve responsiveness.

??. ???????? ?????? ?????????? ??????????????????: Introducing lean and agile practices, such as just-in-time inventory models or modular production lines, help improve flexibility. For suppliers with fewer resources, adopting straightforward strategies like optimizing storage space or cross-training (multi-skilling) workers can greatly enhance their ability to manage sudden changes effectively.

By providing suppliers with practical tools, training, and strategies tailored to their unique circumstances, we can help them build resilience and agility to thrive in today’s challenging and dynamic environments.

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Resilience and agility are continuously tested by an ever demanding market. It is important we establish a process for ongoing evaluation and feedback.

? ?????????????? ??????????????: Supplier progress should be periodically reviewed against agreed KPIs and feedback should be provided. Successes should be recognized while supporting them in areas requiring attention.

? ?????????? ?????????????????? ?????? ????????????: Whether it’s additional training or advice on new technologies, continuous support helps suppliers maintain and enhance resilience and agility over time.

? ?????????????????????? ???? ???????????????????? ??????????????????????: Resilience and agility thrive on continuous improvement. Fostering a culture of collaboration helps address emerging challenges together.

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An important question to answer is: Who in our organization should take on this responsibility?

??. ?????? ?????????????? ?????????????????????? ????????: This is suited best (in my opinion) for smaller businesses, where the procurement team already has a broad set of responsibilities. They’re familiar with suppliers and can provide a practical approach.

??. ?? ?????????????????? ???????????????? ????????: This is the ideal way to go for larger organizations with a high volume of suppliers. A dedicated team can focus on resilience and agility training & track progress closely.

??. ?? ???????????????????? ???? ???????????????? ????????????: This is suited for organizations lacking in-house expertise. Consultants bring specialized knowledge and can offer a robust, strategic training plan with a fresh perspective.

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Our organization’s needs, size, and urgency in building supplier resilience should guide our choice. For smaller teams, leveraging the procurement team might work best. However, if our supply chain is complex, we should consider dedicating a team or hiring an expert for focused results.

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Investing in training our suppliers for resilience and agility is a step towards ensuring long-term success for our entire supply chain ecosystem. This journey should be purposeful, measurable, and collaborative. By setting clear expectations, providing the right support, and fostering strong partnerships, we can create a supply chain that not only withstands disruptions but also thrives through them.

Thank you for taking the time to read! Together, let’s continue to build resilient and agile partnerships to tackle future challenges and seize new opportunities.

#SupplyChainResilience #Agility #StrategicSourcing #ContinuousImprovement