Which action improves supply chain resilience against disruptions?

• A. Diversify suppliers
• B. Rely on a single supplier for cost savings
• C. Eliminate safety stock entirely
• D. Postpone contingency planning until disruption occurs

Answer: (A)

Diversifying suppliers strengthens resilience by reducing dependence on a single source and creating options to keep products flowing when disruptions hit. When one supplier faces a problem—like a strike, transport delay, or a natural disaster—having alternative suppliers allows orders to be shifted quickly, helping maintain service levels and avoid stockouts. This redundancy gives the supply chain the flexibility to adapt and recover faster, which is at the heart of resilience.

Relying on a single supplier increases exposure to a single point of failure; if that supplier is unable to deliver, the entire chain can stall. Eliminating safety stock removes a crucial buffer that absorbs variability and delays, making it easier to run into stockouts during disruptions. Postponing contingency planning until disruption occurs means slower, reactive responses and greater negative impact. Proactive diversification, buffers, and preplanned responses collectively make the supply chain more resilient.