Supply chain resilience no longer implies merely the ability to manage risk. Supply chain and isk anagemnt 2 the global supply chain and risk management survey is a study of the supply chain operations and risk management approaches of 209 companies with a global footprint. Understanding supply chain resilience resilience is at the heart of current supply chain management thinking. The report findings are based on expert level workshops and data gathering throughout 2012. Pepsicos practical application of supply chain resilience. Industry agenda building resilience in supply chains. Supply chain resilience begins with developing and implementing a supply chain management strategy focused on minimizing supply chain risk from supply chain disruptions and maximizing performance levels and profits. Building resilience in supply chains, developed during phase ii of the initiative, explores government and industry sector views on systemic supply chain risks and building a resilience framework to manage them. Evidencebased resilience management for supply chain. Under normal conditions, supply chains can become almost invisible to the end user. In its tenth year, the business continuity institute, supported by zurich, is releasing its supply chain resilience survey 2018. Understanding the concept of supply chain resilience.
More recently, this has expanded into supply chain risk management, supply chain security, and port resilience and security. Building commercial resilience for infrastructure project. Find out more about how your procurement organization can make supply chain resilience. A modular analysis for the supply chain resilience triangle. Research on the phenomenon of supply chain resilience. The last section, the supply chain resilience, recommends appropriate. The supply chain risks section portrays the risk involved in managing the supply chain, and emphasizes the vulnerability of the supply chain whereby risk is still a concern and should not be neglected in todays uncertain and turbulent markets. The survey majors on the methods used to understand the vulnerability and measures taken to ensure supply chain continuity. However, extant research still lacks deep insights into how companies design and manage supply chains according to the resilience principles. There is a clear business case for companies to reduce these risks and strengthen supply chain performance by building the resilience of operations and communities along supply chains. Building resilience helps supply chains withstand the. Building resilience in supply chains weforum world economic. Affected companies need more resilient supply chains to ensure that they can continue production in the face of component shortages.
Insights on reliability at the intersection of operating margin and inventory turns. Which decisions are in the scope of supply chain risk management. Strengthening posthurricane supply chain resilience. Supply chain resilience is for the most part regarded as a matter for the now largely privatesector owners and operators of essential service providers in the national infrastructure sectors. Five steps to building supply chain resilience supply chain. The adaptive capabilities of the supply chain to prepare for unexpected events, respond to disruptions, and recover from them by. The objective of this paper is to conceptualize supply chain resilience scres and identify which supply chain capabilities can support the containment of disruptions and how these capabilities. Resilience is currently an increasing concern in supply chain sc, caused by their globalization, which is subject to diverse types of disturbances. Understanding supply chain resilience supply chain 247. Understanding the concept, and where to invest in resilience, can lead to supply chains that quickly respond to and recover from costly disruptions. Pdf abstract purpose the purpose of this paper is to present a conceptual framework on resilience types in supply chain. Oct 01, 2016 a resilient supply chain starts with a network design and practices that help a company avoid events that will disrupt the supply chain. Introduction business environment has defined as a highly competitive and has become increasingly complex and dynamic. Increase in collective capabilities to overcome risks of increasing vulnerabilities and to improve.
How to achieve supply chain resilience purchasecontrol. Opportunities reporting from members of cdps supply chain. Supply chain resilience critical areas of supply chain risk3 our research with mit identified the following critical areas of supply chain risk. While investing in redundancy represents a pure cost increase, investing in flexibility yields many additional benefits for daytoday operations.
First, i would like to express my gratitude to my supervisory t. Pdf overview on supply chain resilience lhoussaine. Companies source product from suppliers, who might source materials or components from others, who in turn might source from others. Summary of supply chain resilience rankings by industry.
National counterintelligence strategy 2016 pdf supply chain risk management practices for federal information systems and organizations pdf supply chain risk management cnssd 505 defense science board osb task force report on cyber supply chain. At the beginning of the twentyfirst century, the human society is witnessing a period sharp. For monitoring and subsequent analysis of costs in the supply chain can be used many methods. Feb 18, 2020 like a real chain, your supply chain needs strong, flexible links to support your business. Melnyk and others published understanding supply chain resilience find, read and cite all the research you need. Promote critical infrastructure protection and intermodalism as a key component of supply chain resilience. In its tenth year, the business continuity institute, supported by zurich, is releasing its. In the current landscape, we see that a complete shortterm response means tackling six sets of issues that require quick action across the endtoend supply chain exhibit 1. A collection of case studies about hurricanes harvey, irma, and maria and their impact on supply chain resilience. Governance resilient supply chain framework supply chain resilience.
Development of a conceptual framework, an assessment tool and an implementation process dissertation presented in partial fulfillment of the requirements for the degree doctor of philosophy in the graduate school of the ohio state university by timothy j. In the emerging disciplines of risk management and supply chain management, resilience is a relatively undefined concept. Managing supply chain resilience to pursue business and. Integrating the needs of supply chains into mitigation, response, recovery, and resilience planning and actions is key to improving supply chain resilience and. May 22, 2009 in the emerging disciplines of risk management and supply chain management, resilience is a relatively undefined concept. Reapproaching the contemporary issue of a holistic reengineering strategy in relation with the resilience in the value supply chain circuit. Aug 14, 2007 supply chain resilience no longer implies merely the ability to manage risk. Figure 2 shows this pattern of early adoption followed by rapid growth in. A supply chain view of the resilient enterprise an organizations ability to recover from disruption quickly can be improved by building redundancy and flexibility into its supply chain. Supply chain resilience center for transportation and. Following the emergence of the concept of supply chain resilience in the late 1990s, the early 2000s saw a surge of development that spawned widespread applications by the 2010s. Therefore, it is important to first understand the 3 components of predisaster supply chains. Jan 01, 2014 understanding supply chain resilience resilience is at the heart of current supply chain management thinking. How can companies minimize disruptions in their supply chain.
Pdf understanding supply chain resilience researchgate. Supply chain resilience and the 2017 hurricane season. Freight transportation resilience in response to supply chain. Keywords supply chain resilience, supply chain ambidexterity 1. What types of risks are encountered in the supply chain. Find out more about how your procurement organization can make supply chain resilience part of its plan. Supply chain resilience center for transportation and logistics. Supply chain metrics that matter is a series of monthly reports published from august, 2012 through present time by supply chain insights llc. Leverage regional cooperation to support the supply chain, including coordination with other multinational organizations working on supply chain resilience inside and outside the apec region. A good supply chain resilience strategy has four pillars. Supply chain resilience scres differs from vulnerability or disruption management, as it heavily relies on.
But the coconut supply chain is in a region of the world. Replan projects and the prioritisation of deliverables and act upon this. Freight transportation resilience in response to supply. These naturally vary across companies and industries, but should form the starting point to define what the company cares about most and why. How can supplychain leaders also prepare for the medium and long termsand build the resilience that will see them through the other side. The supply chain, like business itself, is a vast and complicated network. Companies need enough manpower to complete the work, but they also need skilled workers with the knowledge to help their employers tackle tough challenges like these.
Perform risk assessments of supply chain resilience, assessing the ability to pay contractors government funding, reserves, loans and the mechanism for flow down the supply chain. The notion of effective supply chain risk management scrm has gained increasing momentum in more recent years due to increasing supply chains complexity. Supply chain resilience holds key to recovery explore how the global pandemic is reshaping supply chains and sectorial activity, and where to look for recovery as lessons emerge on longterm business resilience. Guidance to public and private stakeholders on mitigating and adapting to logistical disruptions to supply chains resulting from regional, multiregional, and national adverse events, both unanticipated and anticipated, is provided in ncfrp national cooperative freight research program research report 39. It now assumes that the ability to manage risk means being better positioned than competitors to deal withand even. This report analyses the key trends observed by both risk managers and supply chain managers over the last 12 months. As a result, leaders in the discipline have worked to better understand what makes a particular enterprise resilient, and thus there is a burgeoning body of knowledge from which other companies stand to bene. Supply chain resilience transportation research board. Resilience is at the heart of current supply chain management thinking, and understanding the concept, and where to invest in resilience, can lead to supply chains that quickly respond to and recover from costly disruptions.
Business continuity professionals play a key role in mitigating incidents in the supply chain. Supply chain risk management and resilience 15 learning objectives for this chapter what is uncertainty and risks. Restoring business operations after a hurricane december 78, 2017 3 executive summary mits humanitarian response lab at the center for transportation and logistics ctl held a roundtable on supply chain resilience in the face of largescale disasters. As globally operating organisations, they are exposed to high risk scenarios ranging from controllable risks, such as raw material price fluctuation. Optimistically, in the end, this study seeks to enhance the operational sustainability in smes manufacturing sector. It also purposes the empirical research into the supply chain resilience. How to achieve supply chain resilience purchasecontrol software. Figure 2 shows this pattern of early adoption followed by rapid growth in scholarly works on supply chain resilience. When one part of this network is exposed to risk, all parts are vulnerable to disruption. A resilient supply chain starts with a network design and practices that help a company avoid events that will disrupt the supply chain. Oct 28, 2018 as the concept of supply chain resilience is a multidimensional phenomenon and relatively a new in the dimension of supply chain and risk management, it was defined using its multidisciplinary perspective such as. Four pillars of a supply chain resilience strategy jabil. In todays increasingly complex business environment, indepth knowledge of your supply chain and being able to map and understand. Such disturbances need to be handled in the right way, compelling the use of tools that can support resilient supply chain decisions.
Pdf supply chain resilience and sustainability george. Download a pdf of strengthening posthurricane supply chain resilience by the national academies of sciences, engineering, and medicine for free. Supply chain resilience, supply chain ambidexterity. Researchers at mit ctl conducted studies on how supply chains are impacted by disruptions such as terrorist attacks, natural disasters, and logistics failures. Clear accountability and ownership supported by a strong foundation of key enablers people, processes, and technologyanalytics are critical to sustaining a resilient supply chain. If this system of logistics cost breakdown is adopted, an optimal level of resilience in the supply chain as such can be defined, where the total logistics costs in the supply chain in a long period of time are minimal. Understanding the concept of supply chain resilience readessay. Supply chain resilience report is available from tracy stickells, cranfield centre for logistics and supply chain management, fax. By identifying key supply chains and evaluating their likely resilience, better informed decisions on supply chain strategy can be made, requiring business continuity. Scout for knowledgeable engineers, procurement specialists and supply. The evolution of resilience in supply chain management. Supply chain resilience expert, university of cranfield. Understanding supply chain resilience supply chain.