How Do We Build Supply Chain Resiliency?

The short answer: Trust.

Image: Unsplash Carl Nenzen

The longer answer is more of the same. But with more words. It would be like me telling you how to have a good relationship with your partner. Do what you say you will. Take your share of responsibility. Apologise.

But often supply chains are long. You won’t have a direct line to the mine providing the silicon for the solar panels that are powering your factory. Or the chemical supplier altering the compounds of salt to ensure water is cleaned from your dye house.

And yet they are still all part of your supply chain.

Which can make us feel a little insignificant.

But we have more power than we know. Take the protests in Bangladesh. It’s wreaking havoc on apparel supply chains. Not that you’d know it much. Garment workers are demanding a minimum wage increase. Wages are being deliberately kept low. It’s estimated a living wage increase would rise garment prices by 5%. The same percentage the British government are impressed they kept inflation at. We could agree to increase prices to the factory. And its completely possible to ring fence those costs for wages.

It’s well known in entrepreneurship that having more money reduces worry and creates space for problem solving. The same thing happens at every level of a company. A Business Fights Poverty study in 2022 demonstrates a direct link between living wages and a resilient supply chain.

It doesn’t matter where you are in a company, you can create trust with those you work with.

For more on building resilient supply chains listen to our podcast on it with Fespa.