Flexible supply chain network connecting the world, symbolizing resilience and adaptability.

Supply Chain Resilience: How Flexibility Can Be Your Best Defense

Avery Sinclair in Business & Economy December 2025 • 4 min read.

"Learn how incorporating flexibility into your supply chain strategy can help you navigate disruptions and maintain a competitive edge."

In today’s interconnected world, supply chains are the lifelines of global commerce, ensuring that goods and services flow smoothly from manufacturers to consumers. However, recent years have exposed the fragility of these networks. Events such as the COVID-19 pandemic, geopolitical tensions, and natural disasters have caused unprecedented disruptions, leading to shortages, delays, and increased costs. Businesses are now recognizing the critical need to build more resilient supply chains that can withstand unexpected shocks and adapt to changing conditions.

Traditionally, companies have focused on optimizing efficiency and minimizing costs, often at the expense of flexibility. This approach works well in stable environments, but it leaves supply chains vulnerable to disruptions. When a key supplier is affected by a crisis, or a critical transportation route is blocked, the entire chain can grind to a halt. The key to resilience lies in building flexibility into every aspect of the supply chain, allowing companies to quickly adjust to new realities and maintain a steady flow of goods.

This article explores the concept of flexibility as a crucial element of supply chain resilience. We will delve into a groundbreaking study that analyzes the US opioid distribution system to demonstrate how flexibility can mitigate shortages and improve overall performance. Furthermore, we will provide actionable strategies and real-world examples to help businesses of all sizes build more adaptable and robust supply chains.

Why Flexibility Matters: Navigating the New Normal in Supply Chain Management

Flexible supply chain network connecting the world, symbolizing resilience and adaptability.

Flexibility in supply chain management refers to the ability to adapt to changing circumstances and unexpected events without significant disruption. It involves having alternative sourcing options, transportation routes, and production processes in place, allowing companies to quickly adjust to new realities. When a disruption occurs, a flexible supply chain can:

While rationing may become necessary as the shortage deepens, substitution is typically the first choice as it impacts final buyers the least. A distributor has two strategies to implement substitution:

Mitigate Shortages: Quickly switch to alternative suppliers or products to minimize disruptions to supply.
Reduce Delays: Reroute shipments or adjust production schedules to avoid bottlenecks and maintain timely delivery.
Control Costs: Negotiate better deals with alternative suppliers or optimize transportation routes to minimize the financial impact of disruptions.
Maintain Customer Satisfaction: Ensure that customers continue to receive the products they need, even in the face of challenges.

An ideal dataset to study the power of flexibility is ARCOS [22]. It lists all drug shipments from 2006 to 2014 in the US opioid distribution system that has been often affected by shortages with dramatic consequences [26, 32, 13, 29, 8]. This dataset offers an unprecedented view of distribution at a systemic scale, which is unique in supply chain research [1]. With these data, we reconstruct 40 billion distribution paths connecting manufacturers to more than a thousand distributors and 200 000 final buyers, i.e., pharmacies, hospitals, and practitioners. Based

Building a More Resilient Future

The journey toward supply chain resilience is an ongoing process that requires continuous monitoring, evaluation, and adaptation. By embracing flexibility, businesses can not only weather current storms but also build a stronger foundation for future success. Investing in resilience is not just a matter of risk management; it’s a strategic imperative for long-term growth and competitiveness in an increasingly uncertain world.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1126/sciadv.adj1194,

Title: Adapting To Disruptions: Flexibility As A Pillar Of Supply Chain Resilience

Subject: econ.gn cs.si q-fin.ec

Authors: Ambra Amico, Luca Verginer, Giona Casiraghi, Giacomo Vaccario, Frank Schweitzer

Published: 11-04-2023

Everything You Need To Know

What is supply chain flexibility, and why is it important for modern businesses?

Supply chain flexibility is the ability to adjust to changing circumstances and unexpected events without significant disruption. It includes having alternative sourcing options, transportation routes, and production processes. In today's world, with events like the COVID-19 pandemic, geopolitical tensions, and natural disasters, supply chains face unprecedented disruptions. Flexibility is crucial because it allows businesses to mitigate shortages, reduce delays, control costs, and maintain customer satisfaction, ensuring a steady flow of goods and services even in challenging times. Without flexibility, companies risk significant halts in operations when facing supply chain disruptions.

How can flexibility mitigate shortages in the supply chain?

Flexibility allows businesses to quickly switch to alternative suppliers or products to minimize disruptions to supply. When a key supplier is affected or a critical transportation route is blocked, a flexible supply chain can reroute or adjust production schedules. This proactive approach helps maintain the supply flow, preventing significant shortages. According to the study based on ARCOS data, flexibility can improve the overall performance of the supply chain and mitigate the impact of disruptions by offering options like substitution and alternative sourcing.

What is the role of ARCOS data in understanding supply chain resilience?

The ARCOS dataset, which lists all drug shipments from 2006 to 2014 in the US opioid distribution system, offers a unique perspective on supply chain resilience. This data allows researchers to reconstruct 40 billion distribution paths, connecting manufacturers to distributors and final buyers. By analyzing this extensive data, researchers can understand how flexibility can mitigate shortages and improve overall performance within a complex supply chain. The ARCOS data provides invaluable insights into how different strategies and choices affect the supply chain's ability to withstand disruptions, providing real-world examples of the effects of flexibility.

What are the key strategies to build a more adaptable and robust supply chain?

Building a more adaptable and robust supply chain requires incorporating flexibility into every aspect of the supply chain. This includes having alternative sourcing options, transportation routes, and production processes in place. Businesses should also prioritize strategies like mitigating shortages by switching suppliers, reducing delays through rerouting, controlling costs through alternative negotiations, and maintaining customer satisfaction by ensuring continued product availability. Continuous monitoring, evaluation, and adaptation are essential to the process, allowing businesses to respond effectively to changing conditions and build a stronger foundation for future success.

How does flexibility contribute to long-term growth and competitiveness in a volatile market?

Flexibility is a strategic imperative for long-term growth and competitiveness. By embracing flexibility, businesses can navigate disruptions, maintain a steady flow of goods, and ensure customer satisfaction, even in the face of challenges. Investing in supply chain resilience allows companies to not only weather current storms but also build a stronger foundation for future success. This proactive approach to risk management ensures that businesses can adapt quickly to changing conditions, maintain market share, and achieve sustained growth in an increasingly uncertain world. It ensures survival and long-term success in unpredictable situations.