Today's business environment is more competitive and unpredictable than ever. Navigating these challenges requires supply chain professionals and organizations to adapt swiftly and efficiently. While volatility, uncertainty, complexity, and ambiguity captures today’s business climate, I do believe the focus must shift to actionable strategies for building resilience within organizations.
At Metsä Board, our philosophy is that resilience is not just about enduring disruptions but proactively preparing for them and nurturing the internal agility to adapt to unforeseen scenarios.
Pillars of Resilience
To safeguard our operations against disruptions, we are building a resilient supply chain based on a few core principles that work together to create a robust framework.
For example, with effective demand planning, supply chain visibility, and inventory management, it becomes possible to better prepare for demand fluctuations and supply interruptions, helping to maintain product supply even in uncertain times. In addition, proactive preparation of our backup mills and alternative converting and warehousing locations – our own and our partners – helps to smoothen the impacts of disruptions and changes in demand.
We also actively maintain backup alternatives for logistics routings. For instance, when the Baltimore bridge tragically collapsed a few months ago, our supply chain team quickly implemented logistics alternatives in less than 48 hours, effectively mitigating potential supply impacts to our customers.
A robust Sales and Operations Planning (S&OP) process, which includes close collaboration with our partners and scenario planning with senior management, also equips us to navigate changing conditions with well-defined strategies.
Altogether, these elements create a collective framework that strengthens our ability to withstand and adapt to disruptions. However, achieving true supply chain resilience also requires a careful balance between strategic planning and operational agility.
Freedom Within the Frame
While building a strong framework is essential, effective organizational resilience is also about cultivating sufficient alignment, empowerment, and adaptability when a crisis hits.
Rigid and hierarchical structures can hinder and slow down responses to dynamic challenges. Fostering a more flexible, fluid organizational culture — like the adaptable structures found in nature — enables teams to respond swiftly and effectively.
In nature, systems are inherently adaptable and responsive to change. This type of adaptability and flexibility is crucial in supply chain operations
By empowering smaller teams to act autonomously while staying aligned with broader organizational goals, it’s possible to leverage the full expertise of the organization to address issues efficiently.
Recent developments in advanced analytics have further increased the speed of our teams to assess risks, develop a shared understanding, implement the best actions and assess their impact with minimal delay, blending proactive planning with agile responses.
It’s impossible to know where and when the next crisis will hit. However, a solid framework that allows for flexibility and empowerment will ensure that an organization is well-equipped to navigate the complexities of today’s business world with confidence and agility.
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