How are companies located in sparse transport networks affected by supply chain disruptions? Are businesses located in regions with sparse transportation networks more prone to supply chain disruptions than businesses located in more favorable locations? Does a sparse transportation network constrain the supply chain setup, such that it is more vulnerable and more likely to be disrupted?
When it comes to a business’ physical location in relation to the functioning of the supply chain, obviously there are good locations and bad locations. Can a business’ organization compensate for that?
The vulnerability of the transportation network as part of the supply chain is of particular interest in countries or regions with sparsely populated areas, and hence, a sparse transportation network, because sparse transportation networks, and thus sparse supply chains, are vulnerable to many different kinds of internal and external risks.
In regions or countries with sparse transportation networks or few transportation mode choices the structure or design of the supply chain, along with the organization and preparedness become important factors in determining if a company has an favorable or a unfavorable location.
How do companies or businesses located in such places adapt to the terms and conditions of their supply chain, how do they hedge against the risk of supply chain disruptions, how are they impacted if there is a disruption?
A typical supply chain consists of a company with incoming raw materials from an upstream supplier and outgoing products to a downstream customer.
A supply chain is characterized by its locational and organizational design.
There are many potential disruptions to a supply chain.
The potential disruptions may or may not influence locational decisions.
The impact and severity of disruptions depends on both locational vulnerability and organizational adaptability.
