[PART 1] SUPPLY CHAIN DISRUPTION STRATEGIES
What are Supply Chain Disruption Responses?
Supply chain disruption responses are actions you take before, ahead of, or during an incident to protect supply, production, and customer commitments.
Strategic buffer measures build resilience in advance. Preventative bypass measures help you avoid foreseeable disruption. Tactical bridge measures reduce the impact of an event that cannot be avoided.
The best time to respond to a supply chain disruption is before it happens. The second-best time is as soon as possible.
Supply chain risk mitigation strategies fall into 3 broad categories:
- Strategic risk management: This is a “buffer” strategy to prevent the event impacting you
- Preventative risk management: This is a “bypass” strategy to avoid the issue before the event
- Tactical risk management: This is a “bridge” strategy to mitigate the impact of an unavoidable event
The goal of each of these risk responses is to mitigate the impact on your supply chain.
How do you choose the right supply chain disruption response?
| If your situation is | Use this response | Your objective | Examples |
| A foreseeable exposure will affect a critical supplier, material, facility, or route | Strategic risk management: buffer | Absorb the impact by building resilience before disruption | Hold buffer stock; dual source a critical material; increase warehouse capacity; hedge commodities |
| An emerging signal gives you enough warning to change the plan | Preventative risk management: bypass | Avoid the affected route, timing, component, supplier, or production dependency | Reroute a shipment; ship earlier; swap a component; use a backup supplier |
| A disruption is already happening or cannot be avoided | Tactical crisis management: bridge | Keep operations moving until normal conditions return | Partly expedite freight; support a supplier; shift production; inform customers early |