The Hidden Cost of Supply Chain Redundancy

This research examines the economic costs of supply chain redundancy, including alternative suppliers, additional inventory, diversified transportation routes, and reserve production capacity. Drawing on international research and evidence, it explores how measures designed to protect operational continuity can also create persistent financial and operating obligations.

The analysis considers the commercial trade-offs between supply chain resilience, working capital, operating costs, and long-term efficiency. It explains why greater redundancy does not automatically deliver greater economic value, and why businesses must distinguish the benefits of reduced disruption exposure from the continuing costs of maintaining alternative capacity.