How Supply Chain Disruption Can Affect Your Bottom Line

Supply chain disruption is any event that interrupts the normal flow of goods, exposing companies to risk and impacting customers. It can result in materials scarcity, delayed deliveries and a range of other issues that affect the bottom line. These events can be caused by a wide range of factors including natural disasters, global political tensions, transportation infrastructure problems, changing laws and regulations, workforce issues and more.

Regardless of the cause, the effects are always the same: production lines pause, inventory levels drop and demand drops. This results in missed delivery windows, lost sales and customer dissatisfaction. Fortunately, strong planning, greater visibility and the use of best practices in risk assessment and management can mitigate these effects.

One issue often overlooked is that supply chains are interconnected across multiple companies and regions. This creates complicated and sensitive relationships with suppliers, and even local events can have ripple impacts. For example, the COVID-19 pandemic demonstrated how a single disease outbreak can affect everything from manufacturing to transportation.

While some of these risks can be predicted and planned for, others are not. This is why it’s important to keep a finger on the pulse of your supplier relationships, consider on- or near-shoring options and invest in talent development. It’s also a good idea to diversify your supplier base and use technology tools to improve visibility. This will help you react faster and more effectively to sudden changes. Ultimately, it’s about building resilience for the long run so that you can survive whatever comes your way.

What is the Defense Alliance?

Defense alliance is an organisation of companies and individuals committed to the development of the Defense industry in Minnesota. It is a not-for-profit organisation which provides a platform for networking, knowledge transfer and advocacy in the national and international arena.

The Alliance’s fundamental purpose is to safeguard the freedom and security of its Allies in a world where peace and security can no longer be taken for granted. NATO’s collective defence is based on the principle that any attack against one of its members must be considered an attack against all of them and should trigger a joint response.

NATO continues to adapt to the challenges of our changing security environment. Allies are strengthening their defence budgets, reversing decades of cuts and moving towards the NATO-agreed guideline of investing 2% of GDP in defence. This will enable the Alliance to strengthen its capabilities and respond quickly to new threats and challenges.

Allies are working together to address the growing risk of Russia’s malign influence and aggression, including its use of hybrid warfare and destabilising activities in Europe. They are enhancing NATO’s readiness to counter cyber threats and addressing new areas of defence, including a whole-of-nation approach to resilience and the Alliance’s ability to deter and defend against complex threats in all domains.

NATO is also improving the effectiveness and interoperability of its Integrated Air and Missile Defence (IAMD). In 2024, NATO Leaders will implement the 5% commitment to increase the Alliance’s defence spending by upgrading existing capabilities, investing in new equipment and increasing readiness and preparedness.