The COVID-19 pandemic exposed significant vulnerabilities in global supply chains. With technology companies scrambling to respond to unprecedented disruptions, it became clear that traditional supply chain models were no longer sufficient. When we look back on the supply chain crisis before and during the pandemic, it is easy to identify the areas of improvement because we now have so much more information and the benefit of hindsight, but during the crisis, it was extremely challenging to find immediate ad-hoc solutions, which clearly illuminated a lack of contingency planning.

To safeguard against future crises, technology companies need to look at developing and incorporating innovative strategies into their planning that can bolster resilience, flexibility, and sustainability. There will always be political and economic turmoil to deal with on a sliding scale of criticality, so it’s imperative that businesses develop continuity plans, which are constantly updated as the capabilities of technology develop.

No two organisations and supply chains are the same. However, there are a number of overarching solutions that can help technology companies to address specific gaps in their supply chain resilience, enabling them to run secure, and efficient supply chains.

Technologies that can directly address supply chain requirements

Blockchain technology can provide end-to-end transparency and traceability for supply chain management. The implementation of “smart contracts” could automatically enforce and verify agreements between suppliers, reducing the risk of fraud and ensuring compliance. With this technology, companies can track components and products in real-time, creating an immutable record that enhances accountability and security throughout their supply chain.

Artificial intelligence (AI) and machine learning can also be used to predict and mitigate against future supply chain disruptions. Predictive analytics can analyse historical data to forecast future challenges, enabling companies to make proactive adjustments, planning, and decisions. For example, AI-driven demand forecasting can optimise inventory levels and production schedules, reducing the risk of overstocking or shortages and ensuring a more efficient supply chain.

Furthermore, building virtual replicas of physical supply chain networks through digital twins enable organisations to simulate and monitor supply chain operations. It allows them to test the impact of various scenarios that can disrupt supply chain networks, helping them to decide upon a mitigation strategy before actually implementing them. Real-time monitoring through digital twins can help ‘war game’ scenarios for early identification of issues, enabling swift and informed decision-making and adjustments.

The advantages of a collaborative approach

Building a community digital platform that can facilitate collaboration among suppliers, manufacturers, and logistics providers can enhance supply chain resilience. These collaborative networks can enable better information sharing, streamlined communication, and more coordinated responses to disruptions. Companies can also leverage open innovation platforms to crowdsource solutions for supply chain challenges, tapping into a broader pool of expertise and ideas.

The importance of cross-industry collaboration cannot be understated in building more resilient supply chains. By forming industry consortia and participating in public-private partnerships, companies can share best practices, resources, and innovations. Collaborative efforts with government agencies and nonprofits can also lead to the development of infrastructure and policies that support resilient supply chains.

It all starts with cyber security

The challenges posed by the COVID-19 pandemic underscored the need for technology companies to rethink their supply chain strategies. By doing so, companies will be able to create more agile, sustainable, and robust supply chains, that are better equipped to handle unexpected disruption and ensure continuity of operations.

However, achieving supply chain resilience is impossible without similarly resilient supply chain cyber security. Any solution that has been implemented to increase operational flexibility and efficiency, must be built on a foundation of strong security protocols and a robust cybersecurity defence plan – throughout the entirety of an organisation’s supply chain.

Introducing new software and solutions into an organisation's own business – or throughout its supply chain – is fraught with danger if cyber risks are not identified, triaged, and remediated. For one critical vulnerability that BlueVoyant tracked in late 2023, researchers at BlueVoyant observed that over 50% of organisations still had unpatched and vulnerable instances over a month after the disclosure. Given that on average it takes 14 days for attackers to exploit these vulnerabilities, many organisations are clearly still lagging behind.

Recent research reveals that, for a new zero-day critical vulnerability that affects between 100 and 1000 vendors, less than 10% will patch this vulnerability within 10 days.

Furthermore, only a third will patch it within 90 days – more than long enough for the threat to infiltrate and disrupt key systems. With between two and four new critical zero-day vulnerabilities emerging monthly, organisations must work with a dedicated cyber security platform/provider that can help organisations to:

• Vet all suppliers and undertaking due diligence on new and existing organisations
• Understand all existing vulnerabilities throughout the supply chain
• Use encryption to secure data at-rest and exchanges

Without this foundational security, even the most cutting-edge solutions can be vulnerable to exploitation, ultimately undermining any efforts to secure organisations’ supply chain. Ultimately, organisations must view cyber security as the cornerstone of building a future-proof supply chain that delivers operational value – regardless of the sector in which that organisation primarily operates.