Lisa Anderson says manufacturers need more than a backup plan

Supply chain expert Lisa Anderson says manufacturers should move past one-off contingency plans as disruptions spread across global networks. She argues companies need more capacity, visibility and alternatives to keep operating when a backup route, supplier or facility is also hit.

Why it matters: - Supply chain disruptions are no longer isolated events, so a single backup plan may fail when the fallback option is also constrained. - Manufacturers that build multiple options in advance can protect production, customer service and profitability when conditions shift. - Greater resilience now depends on capacity, capabilities and visibility, not just having a Plan B on paper.

What happened: - Lisa Anderson, president of LMA Consulting Group, is urging manufacturers to plan beyond the contingency as supply chain volatility becomes a persistent reality. - Anderson said companies need to anticipate changing conditions, adapt quickly and respond when disruption occurs. - Anderson pointed to low water levels that have reduced capacity through the Panama Canal and affected the Mississippi and Rhine Rivers as examples of overlapping transportation stress.

The details: - A company that shifts freight from one route, port or mode can still run into port congestion, bridge closures, labor issues, weather events or other bottlenecks. - Anderson said finding an alternate route, supplier or production location does not mean the problem is solved. - Manufacturers should review end-to-end supply chain networks to identify critical dependencies and available alternatives across suppliers, facilities, transportation modes, routes and logistics partners. - Backup options must be executable, not theoretical. - A backup supplier must be able to increase output when needed. - An alternate manufacturing site must have the equipment, people and materials to handle added volume. - Anderson said capacity and capabilities need to be developed before they are needed. - Possible steps include qualifying extra suppliers, reserving capacity, cross-training employees, building strategic partnerships, identifying alternate transportation modes and routes, and deciding where production can shift or expand.

Between the lines: - The message is not that disruptions can be prevented. - The real shift is from reactive firefighting to designing a supply chain with enough options to absorb shocks. - Visibility buys time, and time expands the set of workable responses. - ERP systems, advanced planning tools, artificial intelligence and supply chain visibility software can help teams spot constraints earlier. - SIOP, or Sales, Inventory & Operations Planning, connects those signals to demand, capacity, inventory, suppliers, production and financial priorities. - Scenario planning can help leadership teams weigh how different disruptions would affect customers, operations, inventory and profitability before a crisis hits.

What's next: - Anderson says manufacturers should measure resilience by how well the organization keeps operating as conditions change. - Companies are being pushed to build resilience into supply chain strategy, planning and investment decisions. - Anderson recommends that manufacturers build options before they need them so they are better positioned when conditions change. - More information is available at LMA-ConsultingGroup.com.

The bottom line: - In today’s supply chain, one backup is not enough. Resilience means having multiple viable alternatives, early visibility and the capacity to act fast.