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Creating resilience: How wholesale & distribution companies can withstand the next disruption
The era of disruption is here to stay. Geopolitical conflict, inflation, pandemics, and shifting regulations are no longer outliers - they’re constants. For leaders within Wholesale & Distribution (W&D), the challenge is not just to react to these shocks, but to operate resiliently despite them.
Most W&D companies still rely heavily on spreadsheets and deterministic planning – a single-number forecast that assumes predictability in an unpredictable world. In that light, it’s no wonder that by 2026, 95% of companies are expected to fall short of achieving end-to-end supply chain resilience, according to Gartner.
Three Pragmatic Shifts to Build Resilience
1) Move from single-point to probabilistic planning
Traditional planning assumes a fixed future. But resilience requires planning within a range of possibilities. Tools like Microsoft Dynamics 365 Finance & Supply Chain Management as well as Dynamics 365 Business Central allow businesses to model multiple demand and supply scenarios and quickly adapt to changes – be it a supplier failure or a sudden spike in demand. This shift allows organizations to manage risk without overstocking or paralyzing operations.
2) Enable dynamic scenario planning with data
W&D businesses generate enormous amounts of data but often lack the tools to translate it into forward-looking insights. This is where BI-tools like 9A Smart Insights, powered by Microsoft Power BI, becomes invaluable. By linking data from ERP, CRM, and third-party sources, leaders can stress-test their supply chains and finances against scenarios like rising fuel prices or port closures.
When your Dynamics ERP is integrated with a Power BI dashboard, you can run what-if analyses, e.g. showing “What if demand in Scandinavia drops by 20%?”, “What if our primary supplier is offline for three weeks?”. Based on these, you can make informed decisions proactively, ensuring you are prepared if the worst scenarios become reality.
3) Establish a formal risk management framework
Most organizations manage supply chain risk informally or inconsistently. The result? Slow, siloed responses that miss the big picture. Establishing a cross-functional risk committee - covering operations, finance, sales, and procurement - transforms risk from a reaction to a routine conversation.
Define risk appetites, monitor triggers in real-time, and track the effectiveness of responses. Embedding this into your ongoing sales & operations planning process ensures risks are seen and acted upon early.
Where to Start
Quick win: Use Power BI to get insights in your status quo with dynamic dashboards with your data – e.g. a basic resilience dashboard.
Next step: Transition from deterministic to probabilistic planning using your digital platform.
Strategic move: Formalize a supply chain risk committee and integrate it into monthly business reviews.
Create a digital common thread throughout your organization
Break down silos across your departments. Optimize and gain valuable insights.
Conclusion
Resilience isn’t a buzzword - it’s a capability that starts with mindset and is enabled by technology. For W&D leaders, the combination of digital tools like Dynamics 365 and Power BI with pragmatic planning and risk governance offers a clear path forward. Not every disruption can be avoided, but your business can be ready to absorb, adapt, and recover faster than the competition.
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