Inbound and outbound vulnerability

After publishing A conceptual framework for the analysis of vulnerability in supply chains, Gøran Svensson came up with a 2nd article along the same topic in 2002, entitled A conceptual framework of vulnerability in firms’ inbound and outbound logistics flows. The difference between the two papers is that while the former deals with the inbound flow only, the latter incorporates both the inbound and outbound flow.

Four vulnerability scenarios

From a vulnerability perspective, both the inbound and outbound flow can be segregated as in [1], where the 2 categories of disturbance (quantitative and qualitative) and the 2 sources of disturbance (atomistic and holistic) create 4 vulnerability scenarios. In order to further refine this conceptual framework. In [2] (this paper), Svensson creates another set of four vulnerability or disturbance scenarios, related to the degree (high or low) of inbound and outbound vulnerability.

Four dimensions

In addition to the 4 scenarios, presented in the framework figure below, Svensson also introduces four principal dimensions that allow for an estimation of the degree of negativity caused by the disturbances:



  • Service Level
    — the degree of reliability in the supply chain
  • Deviation
    — the degree of non-reliability in the supply chain
  • Consequence
    — the degree of negative impact that disturbances have
  • Trend
    — the degree of consistent direction that disturbances have

These dimension can be used in order to assess the vulnerability in inbound and outbound flows. Applying these dimensions in his research, Svensson then develops the framework for his 4 vulnerability scenarios.

The framework

Svenssson (2002) Inbound and outbound vulnerability matrix

Svenssson (2002) Inbound and outbound vulnerability matrix

Conclusion

The four vulnerability scenarios in the framework clearly designate the direction of the vulnerability as coming from the supplier or going towards the customer. Addressing supplier-oriented vulnerability will be different from addressing customer-oriented vulnerability. In addition the four dimension will assist in analyzing and estimating the degree of vulnerability within each scenario.

References

BACK TO POST [1] Svensson, G. (2000). A conceptual framework for the analysis of vulnerability in supply chains International Journal of Physical Distribution & Logistics Management, 30 (9), 731-750 DOI: 10.1108/09600030010351444

BACK TO POST [2] Svensson, G. (2002). A conceptual framework of vulnerability in firms’ inbound and outbound logistics flows International Journal of Physical Distribution & Logistics Management, 32 (2), 110-134 DOI: 10.1108/09600030210421723

Links

Related

Posted in ARTICLES and PAPERS
Tags: , , , ,

ARTICLES and PAPERS
Ménage à trois - the good, the bad and the ugly
No, it's not what you think it is, but I could not think of a more fitting title (to attract more re[...]
Supplier selection based on supplier risk
It's amazing how supply chain risk papers appear in the unlikeliest of places, and today I discovere[...]
BOOKS and BOOK CHAPTERS
Appetite versus Attitude
Finally, and long overdue, another review in the Gower Short Guide to Business Risk book series. Thi[...]
Book Review: Your Research Project
This book is a must-have for any serious student or budding research. Even if you consider yourself [...]
REPORTS and WHITEPAPERS
Global Risk Reports
While waiting for the World Economic Forum Global Risk Report for 2009, the continuation of the Glob[...]
A Decade of Living Dangerously
Do you remember the movie The Year of Living Dangerously with Mel Gibson? Topically unrelated maybe,[...]