How can you build resilience into your global value chain?

1 Assess your current situation

The first step to building resilience into your GVCs is to assess your current situation. You need to identify your key suppliers, customers, and partners, and map out their locations, roles, and interdependencies. You also need to evaluate your exposure to different types of risks, such as natural disasters, political instability, trade barriers, cyberattacks, and pandemics. You can use tools such as risk matrices, scenario analysis, and stress testing to quantify and prioritize your risks.

2 Diversify your sources and markets

The second step to building resilience into your GVCs is to diversify your sources and markets. You need to avoid relying on a single supplier, customer, or region, and seek alternative options that can provide you with similar or better quality, cost, and delivery. You can also explore new markets and segments that can offer you more demand, growth, and profitability. You can use tools such as market research, benchmarking, and network analysis to identify and evaluate your potential sources and markets.

3 Strengthen your relationships and collaboration

The third step to building resilience into your GVCs is to strengthen your relationships and collaboration. You need to establish trust, communication, and coordination with your suppliers, customers, and partners, and share information, resources, and best practices. You also need to align your goals, incentives, and expectations, and resolve any conflicts or disputes quickly and fairly. You can use tools such as contracts, agreements, audits, and feedback to manage and monitor your relationships and collaboration.

4 Adapt your processes and products

The fourth step to building resilience into your GVCs is to adapt your processes and products. You need to optimize your operations, logistics, and inventory, and reduce waste, inefficiency, and complexity. You also need to innovate your products, services, and business models, and respond to changing customer needs, preferences, and trends. You can use tools such as lean manufacturing, agile development, and design thinking to improve and transform your processes and products.

5 Invest in your capabilities and resources

The fifth step to building resilience into your GVCs is to invest in your capabilities and resources. You need to enhance your skills, knowledge, and competencies, and train and develop your employees and managers. You also need to upgrade your technology, infrastructure, and equipment, and adopt digital solutions, automation, and artificial intelligence. You can use tools such as learning platforms, mentoring programs, and innovation labs to acquire and apply your capabilities and resources.

6 Monitor and review your performance and outcomes

The sixth step to building resilience into your GVCs is to monitor and review your performance and outcomes. You need to measure and track your key indicators, such as quality, cost, delivery, customer satisfaction, and profitability. You also need to analyze and evaluate your results, and identify your strengths, weaknesses, opportunities, and threats. You can use tools such as dashboards, reports, and surveys to collect and communicate your performance and outcomes.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?