Supply chain security in focus: How SMEs overcome unexpected crises!

Supply chain security in focus: How SMEs overcome unexpected crises!

At a time when companies are experiencing enormous pressure from global challenges such as natural disasters, pandemic crises and geopolitical tensions, supply chain resilience is becoming increasingly important. The “International Journal of Production Research” recently recognized an article that deals with this essential topic. The article, which was named “Top Trending Article 2024”, comes from the Professorship of Factory Planning and Intralogistics at Chemnitz University of Technology under the direction of Prof. Dr. Matthias Thürer. It is entitled “Assessing supply chain responsiveness, resilience and robustness (Triple-R) by computer simulation: a systematic review of the literature” and explores the possibilities of computer simulations to support resilience in the supply chain. It addresses the need to prepare for unlikely or extreme events, referred to as “gray and black swans,” as well as the often inadequate mathematical models to fully explain resilience.

Resilience in the modern economy is not just a key concept, but a fundamental necessity. According to industry-science.com, over 99% of German companies are small and medium-sized enterprises (SMEs) that play a central role in industrial supply chains. However, these SMEs face challenges exacerbated by new regulatory measures and the need for supply chain transparency. The EU definition of SMEs includes companies with fewer than 250 employees, which often have limited financial and human resources. Such limitations prevent them from meeting the high standards of resilience and sustainability required today.

Challenges for SMEs and the need for resilience

The impact of the COVID-19 pandemic has dramatically highlighted companies' vulnerability to supply chain disruptions. Meeting these challenges requires companies to be able to identify disruptions early, react quickly and adapt. Regulatory requirements such as the Supply Chain Due Diligence Act (LkSG), which comes into force on January 1, 2024, force companies to protect human rights in the supply chain. These legal requirements, together with the Corporate Sustainability Reporting Directive (CSRD), increase the pressure on companies to collect comprehensive data on sustainability.

The comprehensive analysis by industry-science.com shows that SMEs often do not have their own sustainability departments and therefore have difficulty taking the necessary measures. Over 40% of SMEs surveyed stated that the lack of human resources has a high impact on their environmental actions. To promote resilience and sustainability, transparent communication and collaboration within the supply chain are essential. Recommendations for action for SMEs include identifying potential for cost savings, using digitalization to increase efficiency and developing effective strategies through honest inventory.

Strategies to strengthen supply chain resilience

Effective supply chain resilience management includes several core components that are crucial for sustainable company success. This includes risk management-oriented measures to identify and evaluate potential disruptive factors, diversification through alternative suppliers and flexible production and procurement processes. Close cooperation with suppliers and partners is also of major importance. These strategies are crucial not only for ensuring security of supply, but also for companies' agility and ability to respond to changing market conditions.

The study aims to identify challenges related to the implementation of resilience and sustainability initiatives in order to encourage SMEs to take proactive steps. The study was carried out in the Hamburg metropolitan region and included a survey of 120 companies. The results show that SMEs are willing to initiate sustainability projects, which could ultimately strengthen their competitiveness.

Overall, it is clear that strong supply chain resilience is essential not only for the survival but also for the growth and competitiveness of companies in a global context. It remains to be hoped that the insights gained from research and surveys will be taken into account by SMEs in order to create sustainable economic structures.

For more information on this topic you can tu-chemnitz.de, industry-science.com and tacto.ai visit.