Why are supply chains more vulnerable

A study conducted by Cranfield University for the UK government defines supply chain vulnerability as  

The same study identified a number of reasons why modern supply chains have become more vulnerable. 

These factors are considered below in more depth. 

The prevailing business model of the closing decades of the twentieth century was very much based upon the search for greater levels of efficiency in the supply chain. Experience highlighted that there was an opportunity in many sectors of industry to 

Usually the motivation for offshore sourcing and manufacturing is cost reduction. Flowever, that definition of cost is typically limited to the cost of purchase or manufacture. Only rarely are total supply chain costs considered. The result of these cost-based decisions is often higher levels of risk as a result of extended lead times, greater buffer stocks and potentially higher levels of obsolescence - particularly in short life-cycle markets. A further impetus to the globalisation of supply chains has come from the increase in cross-border mergers and acquisitions that we have witnessed over the last decade or so. 

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