The article discusses the disruptions that businesses face in their everyday operations, from small disruptions such as machines going down or unexpected orders, to medium disruptions such as the entry of new competitors or the shutdown of a major retailer. Additionally, the article highlights the big disruptions that can have strategic and global impacts, such as natural disasters, terrorist attacks, or financial crises.

The recent events that put a spotlight on the global supply chain have shown that companies need to understand how to be resilient, manage risks, and respond to sudden and sharp changes in their global supply chain landscape.

The article suggests four key changes that companies need to make to their global supply chain strategy to be prepared for the new normal

1. Prepare for dramatic product sales volatility by understanding where demand is coming from and ensuring the right supply is in the right distribution channel. Utilize supply chain planning solutions to simulate likely scenarios and generate forecasts that better predict ever-changing global demand patterns.

2.Plan for supplier and production shutdowns by integrating business and operations planning. This will help planners simulate how supplier shutdowns are likely to impact product revenue, alerting executives as soon as possible, and enabling them to understand the impact of supply chain disruptions.

3.Navigate commerce and logistics disruption by performing strategic and tactical scenario analysis to help avoid excessive transportation costs. Getting visibility into the logistics network allows businesses to quickly analyze and implement design changes, leading to a more resilient supply chain that can adapt to constant change.

4.Leverage the plunging oil prices by isolating any individual cost component and recalculating cost-to-serve and profitability across an entire product portfolio. Companies can lift product profit margins by understanding the underlying costs of raw materials, including commodities or even labor.