Promote best practice policy, regulations, and flexibility to enable global supply chain resilience. Pdf there has been considerable academic interest in recent years in supply chain resilience scres. H 3 there are two generic categories of supply chain risk. Previously, resilience was not a wellknown concept in the business world, and to some. Building resilience in supply chains world economic forum. Improving supply chain resilience can you afford not to. Use it to drive resiliency, sustainability, agility and innovation in the supply chain to achieve higher returns on assets and revenue growth. Building resilience in supply chains supply chain movement. Supply chain resilience expert, university of cranfield. Business action for climateresilient supply chains.
Integrating effective flexibility measures and resilience to mitigate supply chain risk akushwaha, s. However, supply chains are complex, diverse, and exposed to multiple, intersecting climate risks. Industry agenda building resilience in supply chains. Supplier economic resilience demand modeling parameters supply chain readiness level supplier resiliency modeling e program analysis 3.
The design of resilient supply chains under the risk of disruptions at candidate locations for distribution. Section 2 presents a list of research works focused on supply chain. Creating more resilient supply chains global supply chains bring increased risks of disruption from events such as natural disasters. Restoring business operations after a hurricane december 78, 2017 5 it is within this context of highly optimized lean national supply chains that disasters such as hurricanes inject their chaos. Building supply chain resilience world economic forum. In a steady state world this degree of resilience would suffice, but faced with unpredictable events our supply chain processes also need to be agile and responsive. Immediate actions for supply chain resilience transparency and traceability secure transparency and traceability along the supply chain, identifying critical nodes, components and potential alternative source of supply. Through literature a supply chain resilience framework and measurement tool was identified for potential benefit to air force supply chain management.
Clear accountability and ownership supported by a strong foundation of key enablers people, processes, and technologyanalytics are critical to sustaining a resilient supply chain. Supply chain risk management manage supplychain risk by increasing visibility into your ntier supply chain. Building resilience in supply chains weforum world economic. This report, building resilience in supply chains, developed during phase ii of the initiative, explores government and industry sector views on systemic supply chain risks and building a resilience framework to manage them. This briefing explores the vulnerability of asian supply chains to unpredictable risks that include natural disasters which now are compounded by climate change. Introduction resilience and vulnerability in supply chain are a closely concepts. Often, risks germinate from tier two, tier three or even tier four suppliers. Building resilience in supply chains, developed during phase ii of the initiative, explores government and industry sector views on systemic supply chain risks and building a resilience framework to manage them. The forums report building supply chain resilience being published in collaboration with accenture offers a. Supply chain resilience defined the concept of resilience traces its roots back to the work of c. Definition of concept and its formative elements article pdf available in journal of applied business research 285. How supply chain disruptions affect stock prices source.
In todays increasingly complex business environment, indepth knowledge of your supply chain and being able to map and understand. Although every company wants to be resilient, there is no clear path to allocating the. By understanding and planning for such risks, cisco systems has improved its supply chain resilience. Supply chain resilience no longer implies merely the ability to manage risk. Its a joint effort to secure the supply chain, we need busine ss to know the vulnerabilities of their supply sources.
To build in flexibility for resilience, companies must involve many facets of supply chain design by. However, simply recognizing the value of supply chain resilience as a concept is not enough. This article overviews the five key risks of price, quality, delivery, legal and reputation. Never before has supply chain risk been so to the fore of the organisational mind set. Antecedents and consequences of supply chain resilience. Before getting into details of the elements affecting the supply chain resilience, let us give a brief overview of the paper.
Integrating effective flexibility measures and resilience. Pdf understanding supply chain resilience researchgate. Thoma professor of operations, information, and technology, graduate school of business, stanford university. Supply chains are often exposed to risks and threats brought by natural or man made disasters. Building resilience in businesses and supply chains in asia pdf. Melnyk and others published understanding supply chain resilience find, read and cite all the research you need. Understanding supply chain resilience supply chain 247. Bsr business action for climateresilient supply chains 5 executive summary the year 2015 is a critical year for the business community to act on climate change. Winning with risk both the mounting costs and heightened vulnerability have brought supply chain disruption to the top of the risk register in recent years. A resilient supply chain starts with a network design and practices that help a company avoid events that will disrupt the supply chain. But consumers preferences have shifted toward more nutritious foods. Particular attention was paid to researches that focus on performance meas re ent. In 2008, a pwc study of 600 companies that had experienced supply chain disruptions showed that, relative to peers, their average share price declined by nearly 20%, share. It now assumes that the ability to manage risk means being better positioned than competitors to deal withand even.
Supply chain resiliency is the key to sustained business model and must be integrated within the resilience or business continuity framework of organizations. Their complexity and critical role have businesses and governments increasingly concerned about managing major disruptions. Resilience is at the heart of current supply chain management thinking, and understanding the concept, and where to invest in resilience, can lead to supply chains that quickly respond to and recover from costly disruptions. Organic products, for example, were up 11 percent in 2015 while the overall food market is growing at 3 percent according to a report released by the organic trade association. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national interests. Anecdotal stories combined with frightening evidence demonstrate clearly the stark reality that is a break down in the quality, reliability and traceability of raw materials. Its mission is to be an analytical, researchled global forum for informing, influencing and. But the coconut supply chain is in a region of the world. As the number of natural hazards has increased over the last 10 years, supply chain resilience has attracted more attention with respect to mitigating the effects of these hazards. The science is proven, and the world is poised for critical action at the united nations conference on climate change in paris in december. Since then, the notion of resilience has been applied to fields as diverse as psychology, systems thinking, disaster management, and more recently. Forecast of covid19 on large downgrades to global gdp and trade growth in 2020 02.
H agenda supply chain risk is systemic understanding the sources of supply chain risk managing supply chain risk seeking structural flexibility developing a resilient supply chain 2. This report analyses the key trends observed by both risk managers and supply chain managers over the last 12 months. In addition, these challenges are becoming more dynamic as. Design of resilient supply chains with risk of facility. Air force weapon systems were identified and segmented into two phases of the weapon system life cycle. Supply chain resilience is a comparatively unexplored area of supply chain research, that is related to risk management, but at the same time differs from traditional risk management approaches in that it focuses on firms ability to absorb disruptions or enables the supply network. Bci supply chain survey 20 1 executive summary introduction this supply chain resilience report is the fifth in a series that started in 2009 to consider the challenge of developing resilient supply chains. Development of a conceptual framework, an assessment tool and an implementation process dissertation presented in partial fulfillment of the requirements for the degree doctor of philosophy in the graduate school of the ohio state university by timothy j. This calls for a better strategy around resilience to build agile, transparent and diversified systems.
Richard wilding, profes sor of supply chain strategy. To build resilience, organizations must understand the. Supply chain resilience report is available from tracy stickells, cranfield centre for logistics and supply chain management, fax. It is increasingly important therefore to factor sustainability into discussions of supply chain risk, resilience and efficiency.
This session will reflect upon a few key trends, levers, risks, regulatory requirements and overview of building third party business continuity assessment process. Governance resilient supply chain framework supply chain resilience. Leverage regional cooperation to support the supply chain, including coordination with other multinational organizations working on supply chain resilience inside and outside the apec region. During each event, public officials and private sector leaders attempt to manage the disaster. Integrating the needs of supply chains into mitigation, response, recovery, and resilience planning and actions is key to improving supply chain resilience and. Balancing efficiency and resilience in multimodal supply chains. The power of resilience is a brilliant book that should be read by all business leaders in order to capably manage risks and create growth in the new global economy. Holling, an ecologist who first noted the characteristics of a resilient ecological system in 1973. This collection of research addresses the new realities of todays supply network to help position supply chain executives for success in 2011 and beyond. A new supply chain ecosystem uses advanced analytics to be more predictive, resilient and responsive supply chain digitisation will transform numerous key operations functions e. Supply chain resilience is somewhat underexplored in the academic literature elleuch et al.
The report findings are based on expert level workshops and data gathering throughout 2012. The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. Global supply chains are among the most critical levers for companies to take action on climate change and to gain business benefits from building resilience. Therefore, it is very important for organisations to have deep. Pepsicos practical application of supply chain resilience. The term supply chain can be interpreted in many ways but according to christopher 1992 it is defined as the network of organizations that are involved, through upstream and down stream linkages, in the different processes and activities that produce value in the form of products and ser. Critical suppliers are not the only source of risk in an organisations supply chain. An order form is also available on the above web site. The findings and views expressed in this report are drawn from three research initiatives. Rethinking resilience in global supply chains insead.
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