Building a secure and resilient supply chain

Are you gambling with your supply network? You should be aware that the supply network is inherently vulnerable to disruption and the failure of any one element in it could cause the whole network to fail.  Current trends call for a supply network design that is both secure and resilient; that means a supply network that has advanced security processes and procedures in place, while at the same time being resilient enough to respond to unexpected disruptions and restore normal supply network operations.

In their article, “Building a secure and resilient supply chain“, James B. Rice and Federico Caniato point at a number of actions and responses to achieve supply chain resilience.

Security versus Resilience

A first step in creating a supply network that is both secure and resilient is to recognize that the two are not the same. This distinction becomes important when developing plans focuses on security and resilience respectively.



Actions to improve security can be classified into three categories:
– Physical security
– Information security
– Freight security

Actions to improve resilience can be be divided into
– Flexibility
– Redundancy

Flexibility

An important distinction between flexibility and redundancy is that the latter involves capacity that may or may not be used; it is this additional capacity that would be used to replace the capacity loss caused by a disruption. Flexibility, on the other hand, entails redeploying previously committed capacity.

The following table illustrates the advantages and disadvantages of actions in relation to
– Supply
– Transportation
– Production Facilities
– Communications
– Human Resources

Supply_chain_resilience

Reference

Rice, J.B. and Caniato, F. (2003) Building a Secure and Resilient Supply Network. Supply Chain Management Review, Vol. 7, No. 5, pp. 22-30

Author links

Related

Posted in ARTICLES and PAPERS
Tags: , , , , , , ,

ARTICLES and PAPERS
The six ways of dealing with risk
Classic risk management literature acknowledges four ways of dealing with risk after establishing a [...]
A-maze-ing discoveries
Today's post is on how looking up new articles from reference lists can lead to amazing discoveries,[...]
BOOKS and BOOK CHAPTERS
Book Review: Global Supply Chain Management
The Handbook of Global Supply Chain Management is an excellent book. My interest in it stems from th[...]
Book Review: The Full Costs and Benefits of Transportation
This book, The Full Costs and Benefits of Transportation: Contributions to Theory, Method and Measur[...]
REPORTS and WHITEPAPERS
Vulnerable or valuable supply chain?
More than a year old now, but still holding not so few words of wisdom is the Pricewaterhouse Cooper[...]
How New Zealand develops resilient organisations
Is New Zealand better prepared for a disaster than other countries? As our infrastructure and organi[...]