Resilience in the face of change

Resilience is required; supply chains need to be designed with agility in mind to achieve it. Gartner defines resilience as adapting to structural changes by modifying supply chain strategies, products, and technologies. Agility is described as the capacity to sense and respond swiftly and reliably to unanticipated changes in demand or supply without compromising cost or quality.

Several factors have led to a disrupted supply chain 

The last few years have been brutal stress tests for supply networks. The pandemic, semiconductor shortages, shipping bottlenecks, trade tensions, and extreme weather events have exposed the fragility of long, lean supply chains. A system designed to eliminate waste has instead introduced an unacceptable level of risk. 

Given this strategic context, it’s probably no surprise that a Gartner study highlighted the critical importance of supply chain resilience in today's manufacturing landscape. According to their research, 87% of supply chain professionals plan to invest in resilience within the next two years. 

Agility underpins resilience 

Gartner also found that there has been a concurrent shift away from focusing entirely on cost efficiency to a much more adaptable supply chain to achieve that resilience. 98% of the professionals surveyed were focused on enhancing agility. 

They’re shifting from lean and fragile to flexible and adaptive, from just-in-time to just-in-case (JIC). It’s always been the case, but recent events have made it more apparent: a resilient supply chain is a competitive advantage. Here are three strategic shifts in supply chain resilience in this new era. 

1. The shift from just-in-time to just-in-case  

JIT manufacturing was a brilliant innovation until the world became unpredictable. Designed to eliminate excess stock and keep operations lean, it relied on perfect conditions: stable suppliers, reliable transport, and no disruptions. That world no longer exists.  

The shift to JIC doesn’t mean abandoning efficiency. It means balancing agility with preparedness. Manufacturers prioritise redundancy, visibility, and regionalisation instead of chasing the lowest cost at all costs.  

Unilever, one of the world’s largest consumer goods companies, has led this shift by redesigning its global supply chain. Rather than relying on a centralised, efficiency-first JIT model, Unilever has built flexibility into its operations. The company has localised production to reduce dependence on long-haul logistics, introduced AI-powered control towers that monitor global disruptions in real-time, and diversified its supplier network to avoid over-reliance on any single region.  

But what does this mean? For Unilever. It means faster response times, more reliable inventory, and reduced exposure to global shocks. 

2. How AI is reshaping supply chains  

AI-powered supply chain control towers are emerging as one of the great efficiency unlocks. This disruptive technology is shifting the strategic focus from just visibility to predictability. 

These digital platforms allow manufacturers to track every link in their supply network in real time, using advanced analytics to spot early warning signs of potential disruptions. With AI-driven decision-making, companies can anticipate material shortages, logistics bottlenecks, and demand fluctuations and make proactive adjustments before those risks become crises.  

Apple has mastered this approach. With a global network of over 200 suppliers, Apple has used AI and machine learning to create one of the most adaptive supply chains in the world. The company has expanded production beyond China to reduce geopolitical risk, strengthened key supplier relationships to ensure priority access to critical components, and leveraged predictive analytics to navigate global chip shortages more effectively than its competitors.  

Manufacturers relying on manual forecasting and outdated logistic models are increasingly exposed to higher risks and losing competitive ground. As in many industries wrestling with this new technology, those that embrace and successfully integrate AI will outperform those that don’t.

3. Why regionalisation is replacing globalisation  

Manufacturers are moving away from hyper-globalised supply chains and towards regionalised, nearshored, or reshored models. Bringing production closer to home reduces lead times, geopolitical risks, and exposure to volatile global transport costs.  

Gartner found that many organisations invest in diversifying their supply base and redesigning products to mitigate risk. Collaborative relationships with key customers and suppliers are becoming a priority, with 30% of respondents planning to shift from a global to a more regionalised supply chain model. The future looks bright for localisation, too: 56% believe that automation will enable economically viable onshore manufacturing.

We’re already seeing this shift across industries. Automotive manufacturers are reshoring battery production to reduce their reliance on China for electric vehicle components. Semiconductor giants are investing in domestic chip fabrication plants in the US and Europe to mitigate future shortages. Consumer goods companies are moving production closer to their key markets to maintain control over inventory.  

This shift isn’t about abandoning global supply chains. It’s about redesigning them for agility and resilience. Those who invest in regional supply networks, flexible production, and diversified sourcing will be far better positioned for the next wave of disruptions.  

Implementation challenges

While the strategic shifts toward resilience are apparent, manufacturers face significant hurdles in execution. The transition from theory to practice reveals several key challenges that need to be addressed.

1. JIC shift: The shift to JIC inventory requires a delicate balance. Too much safety stock ties up capital and warehouse space, while too little leaves operations vulnerable to disruption. Many manufacturers are still calibrating this balance.

2. AI and technology integration: integration presents another obstacle. While AI-powered control towers offer tremendous potential, implementation often stumbles on legacy systems and data quality issues. Many manufacturers struggle to integrate data streams from diverse suppliers and systems, limiting the effectiveness of predictive analytics.

3. Regionalisation: implementing this strategy often reveal gaps in local supplier ecosystems. Building robust regional supply networks takes time, especially for specialised components with limited expertise and infrastructure. 

Perhaps most critically, these changes require new skill sets. Organisations need professionals who understand traditional supply chain operations and digital technologies, an increasingly rare combination in today's job market. Like any significant transformation, talent, culture, and capability are key implementation challenges.

The supply chain reinvention: What’s next for manufacturers?  

Leading manufacturers no longer see supply chains as cost centres. They see them as sources of competitive advantage. In the next decade, the companies that invest in resilience today will dominate their industries tomorrow.  

Here’s what the future of supply chains will look like:  

1. A hybrid model of JIT and JIC: companies will find a balance between efficiency and resilience, ensuring they’re lean but not fragile.  

2. AI-driven decision-making: humans enhanced by AI will become the norm, and predictive analytics will become the new standard for logistics, supplier management, and risk mitigation.  

3. Reshoring and nearshoring accelerate: more manufacturers will move production closer to end markets, reducing their exposure to global disruptions.  

Agility, not cost, is the key to victory. 

Companies with the cheapest supply chains will not win the next decade of manufacturing; those with the most adaptable ones will succeed.  

Supply chains are no longer just a back-office function. They are a strategic differentiator. The manufacturers that recognise this now won’t just survive the next wave of disruptions. They’ll lead the next era of industrial innovation.  

At JOURNEY, we help manufacturers Solve & Evolve™ through digital transformation. Want to explore your supply chain resilience strategy? Let’s talk.