Mark Goldstone
Policy Manager – Head of Domestic Competitiveness, Confederation of British Industry
The Government is setting out bold ambitions as part of the forthcoming Invest 2035 industrial strategy, including for the UK to be a global leader in advanced manufacturing.
The resilience of supply chains is a cornerstone of competitive advantage in manufacturing. Recently, the threat of trade disruption has increased pressure on manufacturing supply chains. These shocks have underscored a clear necessity for robust and adaptive systems capable of withstanding, reacting to, and recovering from global challenges.
Supply chain resilience shift
Once optimised solely for cost and efficiency, supply chains are now being reimagined for agility, transparency and robustness. For decades, lean manufacturing and just-in-time logistics ruled the industrial landscape. However, the fragility of these hyper-optimised systems has been exposed, with manufacturers faced with cascading delays, raw material shortages and skyrocketing freight costs. The lesson is clear: efficiency without resilience is a liability.
The resilience of supply chains
is a cornerstone of competitive
advantage in manufacturing.
Key pillars of supply chain resilience
- Diversification of suppliers and geographies: Relying on a single supplier or region is a recipe for vulnerability, leading manufacturers are adopting multi-sourcing as a default to spread risk and increase flexibility.
- Digital twin technology: Digital twins (virtual replicas of supply chains) allow manufacturers to simulate disruptions, test responses and optimise operations in real time. This predictive capability is transforming supply chain planning from reactive to proactive.
- End-to-end visibility: Real-time data sharing across the supply chain enables faster decision-making. Internet of Things sensors, blockchain, and AI-powered analytics are helping companies gain granular visibility into inventory, logistics, and supplier performance.
- Sustainability and circularity: Resilience and sustainability go hand in hand. Circular supply chains that reuse materials and reduce waste are not only environmentally responsible but also less dependent on volatile raw material markets.
- Workforce agility and collaboration: Human capital remains a critical asset. Cross-functional teams, agile training programs, and collaborative ecosystems with suppliers and logistics partners are essential for rapid response and innovation.
Looking ahead: the role of AI and automation
Artificial intelligence is poised to become the nervous system of resilient supply chains. From demand forecasting and route optimisation to anomaly detection and autonomous procurement, AI is enabling smarter, faster and more adaptive operations. Meanwhile, automation — from robotic warehouses to drone deliveries — is reducing dependency on human labour in critical nodes.
The future of manufacturing belongs to those who can turn volatility into a strategic advantage. By embedding resilience into the DNA of their supply chains, manufacturers are not just surviving disruption — they’re thriving through it.
