Supply chain resilience

Supply Chain Resilience 2011," Third Aimual Survey, November 2011. 

DISK DRIVES TEACH COMPANIES NEW LESSONS ON SUPPLY CHAIN RESILIENCE... 

Operational execution efficiency Employee safety performance Supply chain cost performance Supply chain agility Supply chain resiliency Demand driven focus... 

In terms of quantitative approach, some of the supply chain design sffidies have included the topic of supply chain disruption into consideration in order to enhance both supply chain profit and supply chain resilience. Falasca et al. (2008) have extended the supply chain design characteristics concept in Craighead et al. (2007) and proposed a quantitative measure for those characteristics. For instance, supply chain density can be measured as the number of nodes divided by the average... 

Craighead CW, Blackhurst J, Rungtusanatham MJ, Handheld RB (2007) The severity of supply chain disruptions design characteristics and mitigation capabilities. Decis Sci 38(1) 131-156 Falasca M, Zobel CW, Cook D (2008) A decision support framework to assess supply chain resilience. In Proceedings of the 5th international ISCRAM conference, Washington, DC, USA, pp 596-605... 

The evaluation system of supply chain resilience is a hierarehical structure. In the first sequence the Security (SE), Survivability (SU) and Recovery (RE), were evaluated, and the information about them can be represented by the membership function of fuzzy system. Trapezium membership functions are associated with the numerical value RE, SU, SE. Each of these parameters was divided in to three eategories—Low, Moderate and High from range 0 to 1. Level of resilience (R) is an output of... 

SOURCE CHRISTOPHER, M. AND RUTHERFORD, C., CREATING SUPPLY CHAIN RESILIENCE THROUGH AGILE SIX SIGMA , CRITICAL EYE, JUNE/AUGUST 2004... 

Finally, supply chain resilience requires a recognition that when strategic decisions are taken, such as relocating facilities or changing sources of supply, then the impact of those decisions on the supply chain risk profile must be fully understood. Based upon that analysis it may be necessary to re-engineer the supply chain, or parts of it, to ensure the mitigation or removal of that risk. Figure 10.4 attempts to summarise the different requirements that need to be in place if supply chain resilience is to be improved. 

Haraguchi, Masahiko, and Upmanu Lall. Flood Risks and Impacts A Case Study of Thailand s Floods in 2011 and Research Questions for Supply Chain Decision Making. International Journal of Disaster Risk Reduction 14, part 3 (2014) 256-272. Hohenstein, Nils-Ole, Edda Feisel, Evi Hartmann, and Larry Giunipero. Research on the Phenomenon of Supply Chain Resilience A Systematic Review and Paths for Further investigation. International Journal of Physical Distribution Logistics Management 45, no. 1/2 (2015) 90-117. 

Chapter 7 incorporates disruption risk in a supply chain network design model. Supply chain network design decisions that determine the number and location of facilities and the selection of transportation modes have a significant impact on competitive performance. However, facilities and transportation links are susceptible to disruptions. In addition, they have different capacities to cope with those disruptions, which contribute to supply chain resilience. This chapter provides a framework to quantify the risk level of supply chain nodes and links. Then, a multiple objective optimization model is presented for designing a resilient supply chain network, with an emphasis on balancing the cost, responsiveness, and risk of the supply chain. 

Melnyk, Steven A., David J. Closs, Stanley E. Griffis, Christopher W. Zobel, and John R. Macdonald. Understanding Supply Chain Resilience. Supply Chain Management Review (January/February 2014) 34-41. 

Christopher, M. and Rutherford, C. (2004) Creating Supply Chain Resilience Through Agile Six Sigma. Critical Eye, Jun-Aug, pp. 24-28. 

Christopher M and Peck H 2004 The five principles of supply chain resilience. Logistics Europe 12(1) 16-21. 

While companies attempted to implement best practices over the last 30 years, they are now grappling with the fact that many Y2K projects built an efficient supply chain without resiliency. These investments made the supply chain strong, but not agile. Today, most companies have processes that can respond, but cannot adapt. They are too rigid. They cannot sense and adapt to market shifts. This is the basis of the drive to create market-driven value networks. 

The stories of success make fewer headlines. There is no easy correlation between supply chain excellence and financial balance sheet returns. As a result, success is hard to measure. Instead, it becomes the organizational muscle providing year-over-year work resilience. 

Between 2000 and 2010, there were many market shifts, and companies found that without the ability to sense and adapt to market conditions, the reliable supply chain was not sufficient. In 2000, Cisco Systems was caught in the downturn of the e-commerce bubble. As a result of not sensing demand changes, the company was forced to write off 2.25 billion in inventory in 2001. This loss taught the company an important lesson. The redefinition of supply chain processes to be more resilient enabled the company to sense and withstand the downturn of the Great Recession of 2008. 

Throughout the economic downturn, companies one by one gained a deeper understanding that the reliable supply chain was not sufficient. As a result, the demand-driven concepts gained greater adoption in the building of a resilient supply chain. 

Like the story of the three little pigs, supply chain leaders wanted to build supply chains that could withstand the winds of demand volatility or the pressure of supply disruption. These supply chains were built to sense outside-in and change the supply chain response based on market conditions. Supply chain leaders that built resilient supply... 

Market turbulence has increased. As a result, in 2011, 85 percent of companies experienced a major supply chain disruption. To drive resiliency and to improve supply chain reliability, companies must improve demand and supply sensing and drive dynamic decision making. 

Stage 3 The supply chain drives the resilient enterprise. With... 

Traditional supply chains are operationally disconnected and reactive to demand. Demand volatility and operational complexity require supply chains to become more resilient. Market-driven value networks begin with conscious choices that integrate and synchronize supply with demand channels and product portfolios. 

Rice Jr, J. B. Federico Caniato. 2003. Supply Chain Response to Terrorism Creating Resilient and Secure Supply Chains. In Supply Chain Response to Terrorism Project, Interim Report of Progress and Learnings, ed. J. B. Rice Jr. Boston MIT. 

These uncertainties and conflicts exist because little has been done in the way of a unifying framework between IT security and supply chain risk. Given the growing importance of IT in SCM and the rise in IT security incidents in recent years, resolving this dilemma is critical to a resilient modem supply chain. In pursuit of such a framework, a fundamental understanding of IT security risk is essential. Therefore, an overview of IT security risk factors is supplied in the following section. 

Christopher, M., Peck, H. (2004). Building the resilient supply chain. International Journal of Logistics Management, 15(2), 1. 

Portillo, R. C. 2009. Resilient global supply chain network design optimization. PhD dissertation. The Pennsylvania State University, University Park, PA. 

Rice, J. B. and F. Caniato. 2003a. Supply chain response to terrorism Creating resilient and secure supply chains. Report by MIT Center for Transportation and Logistics, Cambridge, MA MIT. 

Designing a Resilient Global Supply Chain A Case Study ... 

Finally, we presented a real-world application for designing a resilient global supply chain for a multinational consumer products company. A multi-criteria optimization model explicitly considered conflicting criteria that integrated financial, customer service, supply chain risk and strategic factors of the company. Model results and managerial implications were also presented. 

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