Skip to main content
loading="lazy"
April 3, 2025

Launch of the Supply Chain Resilience Observatory: global vision, concrete actions

Yann de Feraudy

I think there's a kind of myth behind resilience, and I think that when we got into the subject, we were actually looking for a score, we were looking for a champion, we were looking for the best, and so on. And I remember that we had a few sessions with the COPIL where it was quite tense because, ultimately, what we were looking for were best practices in order to highlight and share them.

With these words from Yann de Feraudy, President of France Supply Chain, we opened the evening's presentation of our White Paper: Supply Chain Resilience.

With this France Supply Chain/Sopra Steria Next co-publication, what we're interested in is the dynamic that companies are becoming part of. We also wanted to establish indicators of this resilience, because things that are measured are managed! That's why we've decided to build on this initial study to create an observatory of corporate resilience, the first of its kind, with the aim of :

Supply chain risk management

Take regular stock of the situation, using an "index" of business resilience

Supply chain risk management

Identify best practices

Supply chain risk management

Offer feedback and expert advice

Supply chain risk management

Provide food for thought with a compendium of outstanding studies and analyses

Supply chain risk management

Share this with the supply chain community

Assessing company maturity

The study is based on well-known supply chain benchmarks, examining planning, purchasing, production and distribution functions, as well as surrounding functions such as information systems and sustainability. "Companies are assessed on a maturity scale of 1 to 4, where 4 represents a competitive advantage. Resilience starts at maturity 3," explains Philippe Armandon, Director of Sopra Steria Next's Industrial Operations and Supply Chain Excellence practice, and leader of the study. Of the 39 companies that responded to the questionnaire, only 26 completed all the maturity questions. This dual approach enables us to obtain a global sample of organizational practices, and a smaller sample for detailed maturity analysis.

The results show that the average maturity score is 2.59, with only 6 companies reaching level 3, the threshold at which resilience becomes a strategic lever. The most advanced companies in this field regularly address supply chain issues at COMEX level, demonstrating the importance of integrated governance. As a link to the rest of this article, it is interesting to note that only 10% of companies have visibility over several levels of their supply chain, with complexity increasing significantly with lower-ranking suppliers.

The results show that their average supply chain maturity score will be 2.59 in 2025.

Risk versus resilience

Before getting down to the nitty-gritty of the discussions, participants wanted to go back over the definition of these 2 terms. "Risk and resilience are notions that are a little different; there's an amalgam between the notions of risk and resilience. The essential distinction lies in the approach taken to events. When it comes to risk, the analysis focuses primarily on the events themselves and the vulnerability they may engender, whether in terms of climate risks, cybersecurity or other threats. This perspective emphasizes the identification and assessment of immediate threats likely to disrupt the business.

Resilience, on the other hand, is based on the assessment and strengthening of long-term capabilities. This approach includes in-depth consideration of capabilities in the broadest sense, encompassing planning, production, supply, distribution and communication.

Photo by Walid Klibi

These two notions are complementary. You have to start with risk analysis, because it provides the basis of vulnerability on which a layer of resilience can be added. And if we want to be truly resilient, there needs to be an alignment between vulnerability and the level of resilience invested.

 explains Walid Kibli, Research Professor at ISLI KEDGE, associated with MIT. This link ensures proactive, adaptable management in the face of hazards.

Renault's risk strategy

Thierry Blein, GM Supply Chain Risks and Business Continuity Plan, began by describing the complexity of Renault's supply chain. Production reaches 15,000 vehicles a day, with each car made up of around 2,000 parts from 4,000 first-tier suppliers. In depth, Renault works with almost 60,000 suppliers. Downstream, 2,000 trucks or ships transport vehicles daily to 5,000 sales outlets in 130 countries. This global, interconnected organization makes exposure to disruptions inevitable: "in 2024, in 7 months, we suffered 10 floods that impacted operations".

Assessing company maturity

To strengthen its resilience, the Group has taken some structuring strategic decisions in recent years, notably by attaching the Supply Chain function to the CEO and investing in digitalization. This transformation has enabled us to decompartmentalize data and obtain a global view of supplier risks. Rather than focusing on the probability of risks occurring, Renault assesses their potential impact on the business. A cross-functional team, with a dedicated budget, analyzes vulnerabilities and anticipates crises by monitoring critical suppliers.

Renault has also set up a single risk management repository accessible to all stakeholders. This approach makes it possible to identify suppliers with multiple risk factors, and to assess the potential impact on production in the event of disruption. This methodology, focused on business impact, reveals vulnerabilities invisible with traditional probability-based approaches.

The complex subject of investing in resilience

"When you talk to people in the supply chain, they know what to do: they know where to invest, where to put flexibility, or strategic stocks. But there's a real difficulty in justifying these investments to top management." This observation highlights a fundamental paradox: investing in resilience means allocating resources to prevent events that we hope will never happen. In this context, conventional financial methods, such as return on investment (ROI) or net present value (NPV) analysis, often prove inadequate.

An alternative approach is to incorporate option theory, already used in technology sectors such as HP and Boeing. This theoretical framework introduces the principle of "the right and not the duty", offering the possibility of acting without immediate commitment. This method enhances the flexibility of decisions by taking future uncertainties into account. Adopting a logic of options enables companies to take preparatory measures (reservations, pre-actions) that facilitate a rapid response to crises when they occur. This approach reflects dynamic, adaptive risk management.

Technology and AI take center stage

Technology and AI take center stage

The use of digital technologies and artificial intelligence is essential to ensure accurate monitoring of supplier risks and early detection of weak signals, "A massive investment over 3 years has been made to digitize and de-risk our most impacting suppliers". Thanks to digital tools, Renault is able to continuously monitor its entire supply chain and detect the first signs of fragility among its suppliers. For example, AI-based risk management solutions can identify social tensions, environmental problems or financial difficulties that could affect suppliers.

Renault relies on two pillars to improve anticipation: visibility and agility. Visibility is based on real-time knowledge of logistics flows, thanks in particular to GPS tracking of trucks and ships. This constant monitoring makes it possible to quickly identify any climatic or logistical risks, and to adapt production forecasts according to recalculated ETAs (Estimated Time of Arrival) versus factory safety stocks. Agility, on the other hand, consists of developing pre-configured scenarios for dealing with disruptions, such as the use of interchangeable parts or alternative suppliers. These scenarios are centralized in a "Control Tower", facilitating real-time operational decision-making.

For further reflection

The importance of keeping one's feet on the ground and shortening the decision-making chain

Direct coordination of Supply Chain crises is essential to maintain a concrete understanding of risks. Being in the field enables us to quickly identify malfunctions and assess whether better risk mapping would have enabled us to anticipate them. This dual role, both operational and strategic, promotes faster, more effective corrective loops.

The importance of simplifying the supply chain to improve resilience

Multiplying suppliers to diversify sources of supply may seem an obvious solution, but it complicates operational management considerably. Without appropriate digital tools, it becomes difficult to locate suppliers precisely and detect signs of failure. Warehouse automation and mechanization also add complexity. Targeted simplification, supported by monitoring and analysis technologies, is essential to ensure lasting resilience, while avoiding the creation of overly cumbersome structures that are difficult to manage.
To go further
An in-depth study that identifies the key determinants of resilience, particularly in operations and ch...
Risk management is a profession, a set of skills and a mindset that organizations need to develop...
Find out about trends and best practices in risk management in a context where supply chains are becoming more and more...