Disruption is an everyday feature of supply chains, not a bug

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As one of the world’s busiest sea lanes, the closure of the Great Belt strait will undoubtedly send short-term ripples through already strained supply chains. Businesses have déjà vu from supply disruptions from the Red Sea attacks, the Suez Canal standstill, and Covid-19 chaos – once again highlighting that disruption is an everyday feature of supply chains, not a bug.

As disruption is now par for the course, supply chain resilience by design is critical to ensure firms are not just preparing, but actively planning, for interruptions. For instance, focusing on dual-sourcing to diversify the supply base for the most critical products will help to reduce the dependency on particular routes or sea freight, helping to offer alternatives for firms reliant on the Great Belt strait.

Data is also critical to help predict delays based on historical patterns and new data, enabling firms to re-route shipments or re-allocate production to alternative sites. Taking steps now to prepare for the next crisis will help them win when, not if, it arises.