By Farokh Ghadially, Vice President – Secure Power, Pacific Zone, Schneider Electric
The last five years have placed unprecedented strain on global supply chains. Geopolitical tensions, trade wars, natural disasters and the global pandemic have revealed vulnerabilities across industries. Today, these challenges are the norm, not the exception - we've moved from the era of "just in time" to "just in case". Leading companies are using this moment to transform their supply chains into a competitive advantage.
At Schneider Electric, we've seen first-hand how organisations that go beyond resilience and embrace anti-fragility, are the ones emerging stronger. Anti-fragile supply chains don't just withstand disruption; they adapt and improve because of it.
Supply chain is business strategy
In today's landscape, supply chain design is no longer an operational concern, it's a strategic imperative. Research by Accenture shows that companies with advanced supply chain capabilities are, on average, 23% more profitable. Yet many businesses still treat supply chain as a back-end function rather than a driver of value and competitive differentiation.
Modern supply chains shape everything from customer experience to product innovation. For data centres and edge IT, where downtime is costly and reliability is paramount, supply chain agility is business critical.
Regional resilience, global coordination
Many organisations have responded to recent disruption by regionalising supply chains. McKinsey's latest Supply Chain Pulse Survey found 60% of businesses are moving towards regional models. In some cases, government initiatives are accelerating this trend, such as the European Chips Act or India's Make in India program.
These strategies aim to manage geopolitical risk and support regulatory compliance. For example, US legislation like the Trade Agreements Act and the Buy American Act prioritise domestic sourcing for government procurement.
At Schneider Electric, we've implemented a four-hub model across Europe, China, the United States and India. Each hub has its own R&D, supply chain and supplier ecosystem, and collaborates closely with regional sales and marketing. This setup enables faster response to market needs while preserving global oversight and resilience.
In the Pacific, Australia's proximity to Southeast Asia, strong infrastructure and rising demand for AI, cloud and edge computing make it an increasingly strategic player in this global network.
From resilience to anti-fragility
While resilience has been the goal for many years, we must go further. McKinsey's research also shows a worrying decline in the number of companies implementing new resilience measures, possibly signalling complacency.
Anti-fragile supply chains use digital tools not just to recover from disruption, but to improve as a result. Predictive technologies, real-time dashboards and autonomous systems break down siloes and provide end-to-end visibility. They reduce human error, enhance agility and enable faster, smarter decisions.
This isn't future thinking, it's happening now. But many organisations have yet to adopt these tools at scale, and that's a risk.
The Fourth Industrial Revolution: still lagging
Despite bold promises, the manufacturing sector still has ground to cover in embracing the Fourth Industrial Revolution. Globally, only 189 sites have been recognised as "Lighthouses" by the World Economic Forum, demonstrating the transformative impact of digital technology on resilience, sustainability and efficiency.
In Australia, there's enormous potential to accelerate this shift. Technologies like AI, IoT, machine learning and blockchain can improve visibility, enable real-time orchestration and optimise performance across the supply chain. But without a commitment to digital investment, we risk falling behind.
Talent and trust: the human element
Digital solutions are essential, but not sufficient. As supply chains become more complex and data-driven, the need for skilled people increases.
We need a workforce that understands how to use data, technology and automation to create value. This means upskilling existing teams, attracting digital-native talent and building a culture of continuous learning and collaboration. CIOs, CSCOs and HR leaders must work together to create this environment.
Just as important are the relationships we build across our supply ecosystem. Strategic partnerships are essential, not just with Tier 1 suppliers but all the way up the value chain. Partners that invest in their own resilience and share information openly are critical to long-term success.
The time to act is now
Australia's future competitiveness depends on how we respond to today's disruption. The choices we make now will shape the agility and strength of our businesses for years to come.
We need to reframe supply chain from a cost centre to a source of innovation, resilience and growth.
It's time to move beyond resilience. It's time to build systems that thrive in volatility.
That's the real competitive advantage.
