The Elements of a Dynamic Supply Chain

Recent natural disasters such as Hurricane Sandy, Tropical Storm Irene, and others have shown the weakness of companies to deal with such crises, especially in the area of a company’s supply chain. Other events such as civil unrest, cyber crime, and oil dependence can also have an impact on a company’s supply chain, and a disruption in any area a company relies upon to do business can have serious consequences.

A supply chain provides the necessary materials and data that a company finds vital to its ability to continue doing business, and a disruption of supplies has been linked to a seven percent reduction in the share price of the affected company. A dynamic supply chain, on the other hand, can help alleviate some of the damage done in the case of a natural disaster or other event. The following section contains some of the elements of a dynamic supply chain, according to a recent article.

Reaction Time

A dynamic supply chain can react rapidly to a disruption by synthesizing any external and internal data. This allows supply chain operators to take the actions needed to minimize any impact from a crisis.


Adaptability and agility best describe the structure of a dynamic supply chain. This allows for the quick adjustment and response to changing economic and market conditions.


Likewise, organizations need transparency and clearly defined areas of responsibility. This allows for coordination between departments and can help alleviate any confusion as to who does what, greatly speeding up action when a disruption does occur.

Efficiency vs. Effectiveness

While having a key supplier can provide for a more efficient delivery of whatever supplies are necessary to continue to do business, diversity allows companies to adapt when their primary supplier is out of commission. On the flip side, supply chain operators can assure that they can meet the needs of their clients by providing a selection of choices to accommodate their customer’s needs.

Emergency Supplies

Another key area that a dynamic supply chain offers are advantage deals with strategic stocks of materials, such as fuel and medical supplies, that it can share with customers in need. Like any other company supply chain, operators need to develop a disaster preparedness plan and include clients as a part of that plan. Supplies that remain unused due to a customer closing down business after a disaster strikes do the supply chain distributor no good.

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