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. 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.
In contrast to the pre-event character of mitigation, economic resilience emphasizes ingenuity and resourcefulness applied during and after the event. It focuses on the fact that individuals and organizations do not simply react passively or in a “business as usual manner” in the face of a disaster.
In a previous post I discussed the issue of Flexibility and robustness to reduce risk and uncertainty. Since then a new term has emerged: resilience, and today I will take a look at that.
To make the supply chain more resilient, businesses need to do more than just think about the problem; they must prepare to act effectively, and find the optimal tradeoff between disruption costs and mitigation costs.
This excellent book by Donald Waters offers a comprehensive overview of many important issues in managing supply chain risk. More than 15 case studies and a straightforward hands-on practical approach make this book an enjoyable read. I almost forgot that I bought this book as a text book.
Excellently written, The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage does not necessarily provide concrete solutions for your own business, but it showcases how other companies, successfully or not, handled various crisis situations.
To think the unthinkable, to plan for the unthinkable is maybe not what is most on people’s mind and more often than not, it is only after a crisis that our thinking shifts. Then however, it may be too late.
Readiness, Response and Recovery are four key elements in the New Zealand Civil Defence Emergency Management Act 2002. But how can this be related to supply chain management?
As our infrastructure and organisations become ever more networked and interdependent there is a growing need to focus on managing overall system risk. In particular, there is a need to focus not only on the vulnerability of our systems to failure, but also on our ability to manage and minimise the impact of any failures.
This paper will first present the main risks that are facing any company. Then, the available options to reduce these risks will be considered. Finally, in relation to these risks, flexibility and robustness will be introduced as a tool to handle uncertainties (risks).
