Accounting for uncertainty is how a supply chain retains its resiliency, and an article at Business Standard discusses how going agile is the best way to make that happen. Using expected price and cost values over contract-defined values, having alternative solutions ready at a moment’s notice, and considering global supplier footprint are all tactics of agile supply chain management. The article gives several examples of this strategy in action. For instance, Li & Fung minimizes risks of several kinds, such as currency and political risks, by having alternative suppliers in multiple countries. Building a legitimate agile supply chain will however take work:
To sustain an agile network, they will adopt a more structured, standardized approach to selecting and approving new suppliers in markets experiencing temporary volatility. They will also invest directly in the development of the supplier ecosystem by cooperating with local authorities, investing in stabilization and development funds, and lobbying.