Modern supply chains achieve remarkable efficiency by sacrificing resilience. Understanding these structural vulnerabilities reveals where opportunities emerge during disruption.
The Just-in-Time Brittleness
Just-in-time manufacturing and inventory management creates extreme efficiency but catastrophic brittleness. When any link breaks, the entire chain collapses within days.
Andrea studied JIT vulnerabilities across industries: - Auto manufacturers with 2-3 days of parts inventory - Retailers with weekly replenishment cycles - Hospitals with days of critical supplies - Restaurants with daily food deliveries
She built a business around "buffer stock solutions"—helping companies identify critical dependencies and build strategic reserves without abandoning JIT entirely. When disruption proved JIT's brittleness, her clients maintained operations while competitors halted.
The Single-Source Trap
Cost optimization drives single-source procurement. This concentration creates efficiency but eliminates alternatives when sources fail.
Martin mapped single-source vulnerabilities: - 70% of companies dependent on single suppliers for critical components - Entire industries reliant on specific geographic regions - Key materials controlled by monopolistic providers - Specialized equipment with no alternatives
His supplier diversification consultancy seemed unnecessary during stable times. During disruption, companies paid premium rates for his database of alternative suppliers and rapid qualification protocols.
The Distance Multiplication Effect
Globalization stretched supply chains across vast distances. Each mile adds vulnerability—more borders, more transport modes, more potential failure points.
Lisa calculated distance vulnerabilities: - Average product traveling 5,000+ miles - Crossing 4-6 international borders - Using 3-4 different transport modes - Involving 10-20 different companies
She built solutions for "supply chain compression"—helping companies source closer to consumption, reducing links and vulnerabilities. Her regional supply network platforms became essential when long chains snapped.