How is "supply chain resilience" defined?

Supply chain resilience is defined as the ability to prepare for, respond to, and recover from disruptions. This concept emphasizes the importance of being able to adapt to unforeseen challenges, such as natural disasters, geopolitical tensions, or unexpected changes in market demand. A resilient supply chain can maintain its operations and structure even when facing these adversities, ensuring that businesses can continue to deliver products and services effectively.

The focus on preparation involves having contingency plans in place, while response encompasses the actions taken during a disruption to mitigate its effects. Recovery involves the strategies used to restore normal operations after a disruption has occurred. This comprehensive approach is essential for maintaining overall efficiency and stability in supply chains, particularly in industries where timely delivery and reliability are crucial.

The other options, while related to supply chain management, do not encapsulate the essence of resilience. For instance, reducing costs without compromising quality is an operational strategy but does not address how to handle disruptions. Dependence on a single supplier poses risks to resilience, as it can lead to vulnerabilities if that supplier encounters issues. The guarantee of uninterrupted supply delivery suggests an ideal state rather than an adaptable response mechanism to challenges, which is at the heart of resilience.