The Supply Chain Stranglehold: Is Your Business Prepared for Disruption?

The Supply Chain Stranglehold: Is Your Business Prepared for Disruption?
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Ever feel like you’re one headline away from disaster? One minute you are cruising along, meeting customer demand and keeping your business humming. The next, a news report flashes on your screen – a natural disaster, a political conflict, a global pandemic. Suddenly, your carefully crafted supply chain feels like a house of cards, ready to topple in the slightest breeze.

Sound familiar? In today’s interconnected world, supply chain disruptions are no longer a rare occurrence, they’re the norm. A staggering 11,642 disruptions were reported globally in 2021 alone. Source:Statista, wreaking havoc on businesses of all sizes. And the cost? A hefty one, with 84.6% of businesses experiencing increased costs due to disruptions. Source:BCI Org

What Supply Chain Disruption is!

Supply chain disruption refers to any significant interruption or disturbance in the flow of goods, materials, or services within a supply chain network. This interruption can arise from a range of factors, including but not limited to:

  • Pandemics and Health Crises: Outbreaks of diseases, such as the COVID-19 pandemic, can lead to a rise in shipment cost, workforce shortages, factory closures, restrictions on movement, and disruptions in global trade and logistics.
  • Natural Calamity: When natural disasters strike, they can have far-reaching effects on economies and supply chains. Whether it is a hurricane, tsunami, snowstorm, wildfire, or earthquake, these events inevitably disrupt global supply chains in several ways by creating an imbalance in supply and demand.
  • Geopolitical Tension: Political instability, regional conflicts, and terrorism have far-reaching consequences such as uncertain operating environments due to sudden sanctions and changes in tariff, increased delivery cost, and extended delivery time.
  • Technological Challenges: Unexpected software glitches, IT system failure, problems in robotic automation, and threats impacting data security & integrity.

How Supply Chain Disruptions are affecting businesses

The consequences of supply chain disruptions are far-reaching. Here’s how businesses are feeling the pinch:

  • Inventory Shortages: Disruptions can lead to stockouts, forcing businesses to raise prices or lose sales altogether.
  • Increased Costs: Businesses struggle with rising transportation costs, fuel prices, and raw material shortages, impacting their bottom line.
  • Production Delays: Delays in receiving parts or materials can stall production lines, leading to missed deadlines and frustrated customers.
  • Operational In-efficiencies: Disruptions expose weaknesses in existing supply chains, highlighting the need for greater visibility and agility.

Supply Chains are arguably one of the most affected business areas by disruptions, significantly influencing business strategy. In normal circumstances, supply chain managers would majorly focus on supply chain efficiency by keeping low inventory carrying costs by operating as per just-in-time principles.

However, in case of disruptions, handling volatility demands a paradigm shift in approach. The new approach needs to pivot to risk mitigation and demands sourcing and logistics to do more with less. Therefore, crafting strategic tactics in response to disruption requires organisational effort, relying on informed decisions based on factual inputs from departments and various stakeholders within the organisation.

Connected Supply Chain

This is where InspireXT’s Connected Supply Chain Management, supported by Oracle’s Fusion Cloud Supply Chain Management, plays a crucial role. How? Let us delve into it further.


The global business landscape is fraught with uncertainty. Supply chain disruptions are no longer a question of if, but when. The good news is that you don’t have to weather these storms alone. By implementing a proactive approach that prioritises risk mitigation, real-time visibility, and data-driven decision-making, you can build a resilient supply chain capable of adapting to disruptions and ensuring business continuity.

InspireXT, in partnership with Oracle with expertise in Oracle Fusion Cloud Supply Chain Management solutions, offers a comprehensive suite of tools and expertise to help you navigate the ever-changing world of supply chain management. From demand forecasting and inventory optimisation to strategic sourcing and real-time data analysis, InspireXT can empower your team to not only survive disruptions but thrive in the face of adversity.

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