Supply Chain Risk Management (SCRM) has many similarities with Business Continuity Management (BCM), which is why SCRM can and should draw upon BCM for advice. One of many good references for further reading on this subject is the The Definitive Handbook of Business Continuity Management
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?
The paper defines the concept of vulnerability as it applies to production systems and is built around three concepts: A taxonomy of vulnerability factors as a basis for or guideline in establishing scenarios.
An input/output model to describe production systems.
A two-step vulnerability analysis for productions systems.
Drivers of supply chain vulnerability are 1) supply-side risk 2) demand-side risk, 3) catastrophic risk. Sources of risk are a) customer dependence and b) supplier dependence, d) supplier concentration and d) single sourcing and e) global sourcing.
What is supply chain risk? Today I will take a closer look at the chapter titled “Managing risk in the supply chain” in Logistics & Supply Chain Management by Christopher Martin.
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.
Transportation professionals should look into the challenges posed by climate change and incorporate current scientific knowledge into the planning, design, construction, operation, and maintenance of transportation systems.
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.
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.
Supply chain vulnerability is an important business issue, but little research has been undertaken into supply chain vulnerabilities. Recently I came across a report on Supply Chain Vulnerability published as early as 2002 by the Cranfield University.
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.
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).
