June 20, 2025 5 Steps to Supply Chain Agility in Manufacturing

Agility means survival in uncertain markets– 5 ways to build flexible, resilient supply chains that thrive in uncertainty.

By Amber Salley, VP of Industry Solutions, GAINSystems

Today, manufacturers are operating in an increasingly uncertain and unpredictable environment where agility is not just “nice to have”, but is now essential for survival. More than at any time in history, supply chains are more interconnected, complex and vulnerable. With global pandemics, raw material shortages, evolving regulations and rising geo-political conflict, supply chain professionals face a barrage of challenges that demand rapid and effective responses.

An agile supply chain ensures faster, smarter decisions because you’re not reacting to disruptions but planning for them. More than speed, supply chain agility also incorporates flexibility and adaptability to respond quickly and effectively to unexpected conditions. Having agility allows organizations to navigate shifting consumer demand, supply disruptions and market volatility without losing momentum. It is a defining factor that separates resilient organizations from competitors that are left scrambling to recover from disruptions.

Modern Manufacturers face key challenges that demand agility

Addressing these challenges requires a strategic shift toward real-time visibility, advanced planning tools and a composable technology framework.

Some common challenges include:

Volatility and Omnichannel Complexity: Manufacturers manage an intricate web of sales channels which requires a quick response to shifting demand patterns to meet customer expectations.

Misaligned Inventory: Overstock, tying up capital or stockouts leading to missed sales create financial strain. Fulfilling customer promises depends on real-time inventory. Manufacturers must match inventory to demand with precision, but outdated tools make it difficult to keep up with the pace of modern manufacturing

Limited Inventory Visibility: Without a multi-echelon inventory strategy, manufacturers struggle to gain a clear, consolidated view of inventory across all supply chain tiers, including raw materials, in-process goods and finished products. This lack of visibility creates inefficiencies, bottlenecks and reactive decision-making, which ultimately compromises service levels and profitability.

Outdated Planning Tools: Manual spreadsheet-reliant processes and monolithic “one-size-fits-all” solutions fall short in managing the intricacies of modern manufacturing. A lack of automation and real-time data cripples the ability to respond to market changes effectively.

Increasing Product Complexity and Customization: The need for personalization and mass customization adds layers of complexity to production. Manufacturers must juggle a wide array of products and components while maintaining efficiency and consistency.

Production Scheduling Issues: Without synchronization across systems, production suffers from delays and inefficiencies. Real-time adjustments are key to maintaining operational flow during uncertain times.

Operating Margins Under Pressure: Rising transportation expenses, labor shortages and energy costs increase financial strain. Agile logistics enable cost-effective solutions without compromising service standards.

By embracing agility, manufacturers can respond dynamically to change, streamline operations and unlock new levels of efficiency and competitiveness.

Building a resilient supply chain isn’t just a goal for modern manufacturing organizations. It’s now necessary for survival in an increasingly chaotic market. Resilience empowers manufacturers to navigate disruptions, adapt to demand changes and deliver exceptional service levels while protecting profitability. Achieving this level of agility and stability may seem daunting, but it’s entirely within reach. It takes five essential steps manufacturers can follow to transform their supply chains into their competitive advantage

1. Adopt a Composable Mindset

Supply chain professionals can no longer rely on rigid, one size-fits-all systems to achieve success. The ever-increasing complexities of global markets, shifting demands and supply disruptions require organizations to seek and implement modular, adaptable solutions.  These are systems of interoperable components that can be seamlessly added, replaced or adjusted as business needs evolve

Composability begins with a simple yet transformative principle: there is no one single “right answer” or perfect solution that can address every supply chain challenge. Many monolithic software providers claim to offer such all-encompassing solutions. However, the reality quickly becomes evident that some features deliver value, while others fall short. Relying on a solution that is merely “good enough” or assumed to be reliable is a gamble and arguably, more dangerous than having no solution at all. The stakes are too high for companies to pin their hopes on one-size-fits-all systems that can’t adapt to their supply chains to the world’s unique and evolving demands.

Rather than expending time and resources chasing an elusive “one-stop” solution, composability embraces a more pragmatic philosophy. It focuses on leveraging modular components that can be seamlessly added, replaced or adjusted without disrupting (ripping out and replacing) existing systems. Each module is purpose-built to address a specific supply chain function or functions, such as demand forecasting, inventory optimization or lead-time prediction. The modular nature of composable systems allows companies to make targeted enhancements and seamlessly integrate new capabilities, eliminating the costly and disruptive need for complete system overhauls. Developing a composable mindset means designing a supply chain network with flexibility at its core. This begins with a modular approach to processes like demand planning or inventory management.

2. Leverage Automation, AI & Machine Learning

Automation, Artificial Intelligence (AI) and Machine Learning (ML) enable organizations to achieve a level of precision and efficiency that traditional methods can’t match. These technologies work together to streamline operations, improve decision-making and optimize performance across the supply chain. Applying AI to analyze vast datasets and using ML to continuously refine processes, companies can shift from reactive management to proactive, data-driven decision-making. This allows supply chain professionals to predict disruptions, optimize resources and better align with customer needs — all while reducing operational costs and increasing resilience.

3. Optimize Inventory

Effective inventory management is essential. Organizations must align inventory levels with actual demand to reduce carrying costs and avoid stockouts/overstock. Optimizing inventory involves using advanced tools and strategies to ensure the right products are in the right place at the right time. By adopting a data-driven, demand-focused approach to inventory, businesses can improve working capital, streamline operations, and enhance overall customer satisfaction

4. Increase Resilience with Continuous Planning and Risk Assessment

Supply chain resilience is no longer an option in a world where disruption is the norm — it’s a necessity. Organizations can’t continue to rely on static, once-a-year planning that fails to account for sudden change, regardless of its cause. Continuous planning and proactive risk assessment help companies anticipate challenges, adapt quickly and maintain stability in the face of uncertainty. Combining real-time data with predictive tools and scenario modeling allows businesses to identify vulnerabilities, assess risks and make agile, data-driven decisions that minimize disruptions and maximize operational continuity.

5. Continuous improvement is the ongoing effort to refine processes, optimize performance and drive innovation across your supply chain network. Rather than viewing improvements as an annual event, organizations must foster a culture of continuous learning, measurement and adjustment to keep pace with the ever-evolving market. Make small, incremental improvements that add up over time to deliver measurable gains in efficiency, cost savings, and customer satisfaction, transforming challenges into opportunities for growth.

Organizations that foster a culture of adaptability and excellence will position themselves for supply chain success. Incremental changes deliver long-term benefits, enabling supply chains to remain efficient, resilient and prepared for whatever challenges the future holds. In a competitive landscape, companies that embrace the above steps will lead the way, transforming small adjustments into significant, sustainable success.

About the Author:
Amber Salley is the Vice President of Industry Solutions at GAINS, where she helps companies embrace Decision Engineering & Orchestration (DEO) to improve supply chain performance. With deep experience in supply chain planning and analytics—spanning roles as a Gartner analyst, practitioner, and consultant—Amber translates complex challenges into clear, strategic actions. She is passionate about helping supply chain leaders navigate uncertainty with clarity and confidence.

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