Supply chain resilience has become a key focus of many organizations as disruption has increased. Resilient supply chains allow organizations to mitigate risk by anticipating and addressing issues proactively, and by quickly adapting to disruptions without significantly increasing operating costs.
Companies can focus on resiliency within the supply chain across six dimensions, which allow them to properly control, collaborate and act on disruption:
The finance organization has primarily engaged in the control driven elements of visibility and governance, while maintaining a more passive role in the other, more operationally driven dimensions. There is a need for finance to increasingly collaborate alongside all operations moving forward.
There are some natural areas where this increased role from finance fits:
The role of the finance organization is critical in managing supply chains and their resiliency moving forward. Near-term impacts can be softened with an eye on supply chain resiliency and finance participation in operational decisions. Finance can also assist with managing future aftershocks and disruptions, and help to stabilize the supply chain through strategic planning and adjustments.
Andy Prinz is managing consultant, and Jack Johnson is principal consultant, at PA Consulting.
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