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Meeting the Challenge of Supply Chain Disruption

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Executive Summary

The past two years have demonstrated that the familiar formula of minimizing costs and maximizing efficiency in global supply chains is often no longer enough. Now redundancy and resilience should be added to the equation to address increasing supply chain disruption.

To gauge the impact of recent disruptions and how supply chain executives are balancing this new equation, Deloitte and Manufacturers Alliance surveyed more than 200 manufacturing executives. Our study addresses the real impact executives have observed in their own businesses over the past 18 months. This paper highlights a range of new approaches and tools manufacturers are deploying as disruption becomes the norm. What emerges are four components important to a successful supplier management strategy: strengthening existing relationships, engaging multiple suppliers, deploying digital tools for increased visibility, and combining efficiency with resilience. These may be tried-and-tested tactics, but they are now being enhanced to meet new challenges head on.

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Over the last 12-18 months, 80% of survey respondents have experienced supply chain disruption

80% of survey respondents have experienced significant supply chain disruption

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