How companies can plan for supply chain disruption and reduce risk

Adaptability must be the industry’s central objective, and through new AI technologies, businesses can quickly build resilience and develop the ability to pivot as new challenges emerge. Orchestration will also play a key role, helping supply chain professionals move beyond constant firefighting and instead intentionally design “shock absorbers” into their supply chain.

We’re seeing this shift in action as over the last three months alone, scenario-modeling activity by automotive manufacturers using Kinaxis grew by nearly 500%. That’s almost a sixfold increase in scenario simulations since late summer, as companies leverage ‘what-if’ planning to test responses to everything from supply shocks to demand surges. This rapid acceleration is a clear sign that automotive brands are moving from reactive to true anticipation and orchestration, enabling them to respond with greater speed and confidence.

The companies that will thrive are not just those that invest in AI, but those that use it to accelerate adaptability at scale. That means rethinking roles, redesigning decision-making, and building human-plus-machine operating models that can anticipate disruption rather than simply react to it. For automative brands, moving beyond automation toward anticipation is going to be critical in an increasingly volatile world.

As a supply chain specialist, how do you feel the current supply chain challenges shape up against past challenges and industrial trends?

Historically, automotive supply chain models were shaped by a strong focus on cost efficiency and scale, with low-cost supplier outsourcing and just-in-time manufacturing at the centre of these models. These approaches worked well in an environment where demand patterns were relatively predictable and global trade flows were stable, but today’s challenges look very different. The automotive industry is facing more frequent and overlapping sources of disruption that aren’t going away anytime soon – just consider geopolitical tensions, semiconductor shortages, regulatory pressures and the EV transition, to name a few. These forces combined reveal how fragile just-in-time networks are, with little room to absorb shocks.

As a result, supply chains are evolving from lean cost centres into strategic functions that must balance efficiency with adaptability. The priority is no longer just reducing cost, but building networks that can sense disruption early, respond quickly, and continue operating as conditions change. This transformation is visible in the data: in the last three months alone, automotive scenario-planning volumes on our platform have increased nearly sixfold. This trend highlights how companies are not only aware of new risks, they’re actively building resilience and optionality into their networks through advanced scenario analysis and real-time orchestration.”

Are you optimistic that the auto industry can meet the supply chain challenges ahead given the huge challenges also presented by electrification, ADAS and other advanced tech that is relatively expensive? It’s a lot to manage strategically, isn’t it

I am optimistic, but only for businesses that are willing to fundamentally rethink how they plan and operate their supply chain. There’s no question that electrification, ADAS, and software-defined vehicles (SDVs) add significant cost and complexity, but at the same time, the industry is still under pressure to move faster and operate more efficiently.

The reason for my optimism is that many organisations are already recognising the need to change, and our research found that 67% of British businesses are already focusing on restructuring to reduce supply chain risk.

The key shift is the supply chain being treated as a strategic capability rather than an afterthought. The most advanced organisations are already showing that a tighter connection between product strategy, supply planning and execution is helping them manage complexity at scale and move faster and more efficiently. Those that embed advanced planning, orchestration and adaptability into their operating models are best positioned to turn disruption into a competitive advantage rather than a constraint and manage challenges today and in the future.

“How companies can plan for supply chain disruption and reduce risk” was originally created and published by Just Auto, a GlobalData owned brand.

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