Premium Essay

Building a Resilient Supply Chain

In: Business and Management

Submitted By maksim90
Words 5658
Pages 23
Building a resilient supply chain

Introduction

Global supply chains and transport networks create the core of the global economy, fuelling trade, growth and consumption. Due to the never-ending push of management boards to improve efficiency and increase profit, supply chains are becoming more and more complex. Getting leaner, just-in-time inventory, outsourcing and other trends have introduced many business benefits, however we must not forget about the other side of the problem; new kinds of supply chain risk. Except from the internal company’s trends, other macro factors are influencing the complexity of a supply chain. Forces such as globalization, e/m-commerce and global connectivity are fostering the process of higher complexity within the chains and are amplifying the impact of problems & risks, which may arise.

The trends and are not only influencing the company side though. Customer expectations and PLCs continue to develop and change in reference to external factors. A constant stream of products (high quality, low cost and environmentally friendly) is expected by the modern times buyers. The internet, social media platforms and the „shrinkage of the distances“ between people, lets the public quickly learn about any weak spots of company; sometimes even before the information reaches the employers.

Not only internal trends have contributed to the fragility of the supply chains. External challenges during the last decade such as the fuel crisis, mouth disease, SARS and natural disasters (floods, hurricanes ex. Sandy, earthquakes) have exposed supply chain vulnerability. In 2012, there were 905 natural disasters (93% of which were weather related catastrophes). Overall costs amounted to US$170 billion and insured losses to US$70 billion (worldwatch.org).

Black swans – events known for low probability and high impact are something regular in

Similar Documents

Premium Essay

Can Supply Chain Be Optimized and Resilient?

...Table of Contents MODULE TITLE: SUSTAINABLE SUPPLY CHAIN - 1 - DESIGN AND OPERATION - 1 - 1.0) INTRODUCTION - 3 - 1.1) WHAT IS THE ISSUE? - 3 - 1.2) CURRENT STATE OF RESEARCH - 4 - 2.0) SUPPLY CHAIN MANAGEMENT (SCM) - 6 - 3.0) SUPPLY CHAIN OPTIMIZATION (SCO) - 7 - 4.0) SUPPLY CHAIN RESILIENCE (SCR) - 9 - 5.0) CAN SUPPLY CHAIN BE OPTIMIZED AND RESILIENT? - 10 - 5.1) CONCLUSION - 12 - 6.0) REFERENCES - 13 - 7.0) APPENDIX - 17 - 7.1) VULNERABILITY FACTORS - 17 - 7.2) CAPABILITY FACTORS - 18 - 1.0) Introduction The fierce competition in global and local markets, has forced company leaders to focus more on developing and designing an efficient and effective supply chain network. Pishvaee and Torabi (2010) ascertain that one of the most strategic and important element of SCM is making a strategic decision on supply chain network design. And this design takes into consideration some critical parameters that come with a lot of variability, such as the flow mechanism across the chain, facility locations, sizes and numbers. Because this long-term decision will impact the competitiveness of the company in many years to come, therefore, the designed network should be robust with these uncertain parameters. As a robust SC structure is the source of sustainable competitive advantage in this turbulent economic downtown. Therefore a robust SC is capable of making a firm resilient (Tang, 2006). The remaining part of this write-up is organized...

Words: 5681 - Pages: 23

Premium Essay

Market-Driven Company

...called "Easyweb" in the 80s. The new technique was a light spot at that time, and greatly benefited the bank from attracting a large base of new clients. In the following years, TD bank continued to improve the Easyweb system based on market reaction and provide exceptional banking services to its clients. After 20 years endeavour, TD bank is now ranked the second largest bank in Canada, with the largest customer base. Logistics strategy A company's logistics strategy should be matching to its overall business strategy to take effect. A logistics design strategy, according to Rushton, "is concerned with ensuring that business methods are aligned and organized so that they operate across the traditional company functions and become supply chain oriented" (Rushton et al 2010, p.88). There are four principles should always be considered when developing a logistics strategy, including responsiveness, reliability, resilience and relationships (Christopher...

Words: 889 - Pages: 4

Premium Essay

Business

...SC Response to Terrorism Project MIT Center for Transportation and Logistics “Supply Chain Response to Terrorism: Creating Resilient and Secure Supply Chains” Supply Chain Response to Terrorism Project Interim Report of Progress and Learnings August 8, 2003 This report was pre pared by James B. Rice, Jr. of the MIT Center for Transportation and Logistics (CTL) and Federico Caniato of Politecnico di Milano for the Supply Chain Response to Terrorism Project team with contributions from team members Jonathan Fleck, Deena Disraelly, Don Lowtan, Reshma Lensing and Chris Pickett. This work was conducted under the direction of Professor Yossi Sheffi, CTL Director. Please contact James B. Rice, Jr. of CTL (jrice@mit.edu or 617.258.8584) if you have any questions or if you would like to discuss this report. 08/12/2003 1 SC Response to Terrorism Project Supply Chain Response to Terrorism Project: Interim Report of Progress and Learnings 1 2 Executive summary........................................................................................................... 4 Research introduction and background ............................................................................. 6 2.1 Introduction................................................................................................................ 6 2.2 Background Research ................................................................................................ 6 2.3 Project...

Words: 28274 - Pages: 114

Premium Essay

Supplychain

...Characteristics of The Modern Supply Chain Posted on December 16, 2015 by Danielle Di Giovanni Today having a modern and agile supply chain can mean the difference between staying afloat and sinking. Over 80% of businesses report experiencing at least one supply chain disruption in 2014. With constant and rapidly changing market conditions, organizations need to be lean and flexible in order to respond to disruptions quickly and effectively. Organizations who adopt modern supply chain practices that are flexible, account for disruptions, and leverage new technology fair better in the long run. Let’s take a deeper look into how Technology, Continuous Improvement, and Resilience help supply chains remain relevant and sustainable. Technology Innovation is key to business improvement and supply chain management is no exception. To meet ever-changing consumer demands, organizations must continually optimize the productivity of their supply network due to global competition. Leveraging modern technologies can help simplify processes, reduce costs, improve customer satisfaction, and provide greater control over your supply chain. IoT technologies present some very promising opportunities that help track products to increase visibility and reduce the impact of disruptions due to material shortages or natural disasters. For example, consider Coca-Cola as they recently reinvented their vending machines and introduced Coca-Cola freestyle®. Coca-Cola freestyle® offers consumers fountain...

Words: 1029 - Pages: 5

Premium Essay

Supply Chain Synchronization

...horizontal platforms where the “supply chain becomes a confederation of organizations that agree on common goals, each contributing specific strengths” (Christopher, 2011) In theory, the natural and logical progression towards an advanced supply chain system is where a “series of relationships between partners is based upon value added contributions and exchange of information” (Christopher, 2011). It is difficult to imagine that the reaction of a fully synchronous supply chain in my industry is entirely feasible. In reality, all industries would call for the combination of various players who stay true to their core strengths to work together to form a sustainable advantage, through a web of relationships. If we examine the challenges of supply chain integration as described by Christopher (2011), it is said that (1) collective strategy development, (2) win-win thinking, and (3) open communications are all fundamental elements of a synchronous supply chain. I am doubtful whether the business environment in Mozambique is conducive to the requirements needed for cooperation, creation of visibility and seamlessness of differing procedures without affecting customer retention – unless the effort is done in-house rather than between incapable market participants. “Perhaps the biggest breakthrough prospect lies in achieving truly integrated decisions support systems that link all parties.” (Gattorna, 1998) If we consider the role of supply chain orchestration in the move towards...

Words: 1103 - Pages: 5

Premium Essay

Challenges

...THE RESILIENCY CHALLENGE: CONSTRUCTING THE AGILE SUPPLY CHAIN FOR HEAVY INDUSTRY June 2014 By Lisa Harrington, President, lharrington group LLC and Associate Director, Supply Chain Management Center, Robert H. Smith School of Business, University of Maryland 2 The resiliency challenge The engineering and manufacturing sector (E&M) is the definition of diversity. The companies that make up the sector manufacture everything from jet engines and drilling rigs to simple fasteners and filters. Broadly speaking, though, E&M firms fall into a number of sub-sectors including Aerospace and Aviation and Industrial and Construction Equipment. The overall sector, like all industries, faces a myriad of issues around volatility, including dealing with natural disasters and supplier disruptions. But these issues aren’t the only ones that keep sector executives up at night. E&M CEOs also worry about how to transform their frequently large and conservative companies into agile enterprises capable of meeting new competition and opportunity head on with faster, leaner and more resilient operations. Global market dynamics are driving the need for transformation. As emerging markets grow and new markets emerge, demand is dispersing geographically. Demand is also fragmenting as a result of increasingly complex requirements from customers both for new product customization and post-sale support and service. Customers want – and expect – more choice on configuration...

Words: 5054 - Pages: 21

Premium Essay

Supply Chain Data Visualization by Mapping and Geographic Analytics

...D’Amore-McKim School of Business Supply Chain Data Visualization by Mapping and Geographic Analytics (GA) Sandeep Kumar Karumuru 04/19/2016 Image1 Research Paper submission for Supply chain management (Spring 2016) To Distinguished Professor of Supply Chain Management Dr. Nada R. Sanders 1 Table of Contents Abstract 3 Overview 4 Background 5 Supply Chain Visualization 6 Supply Chain Mapping 7 Geographic Analytics 8-11 Business Example 12 Future Trends 13 Benefits and Challenges 14 Conclusion 15 Bibliography 16 2 Abstract The focus of this research paper in on the process of how workflow is handled in a typical supply chain environment. There are numerous areas of focus that come to mind when we talk about improvements for a supply chain but the process itself is not given enough significance. The research paper covers the most popular process in use, from spreadsheets to its immediate future evolution i.e. visualization tools for supply chain data. There are several tools that exist in the market, each of them have their advantages and disadvantages when used in a certain environment. Supply chain mapping is one such tool that many companies are already utilizing but the mapping tool which gives a visual representation of the entire supply chain network is only an abstract network map and so it has its shortcomings. In contrast, supply chain mapping can be utilized alongside...

Words: 2865 - Pages: 12

Premium Essay

Supply Chain

...The Impact of “Cloud Computing”-based Information Sharing on Supply Chain Li YiPeng, Zhongnan University of Economics and Law, School of Information and Safety Engineering, Wu Han, China, Lyp2357@163.com The research presented in this publication uses both analytical and methodological approach through mathematical models to exploit a real time information sharing based on “Cloud Computing”. The author has clearly provided type, limitation and limited orientation to the following terminologies with respect to the scope of is research and publication: Type of Information Shared, The pertaining definitions of Information Measurement, Quantitative and Qualitative Measurement of Information, Accelerating Physical Flow, Scope of Uncertainty in the Supply Chain, Building Cloud Computing Platform in Supply Chain. The methodological approach is also provided to find the optimal solution for information sharing in a cloud computing scenario, the study uses a mathematics optimization model by including variables such as Product, Consumer (computed through Poisson Process, Auto Regression, ARIMA and Stationary Demand), Retailer and Manufacturer. The results of this study are very important to supply chain practitioners. It can be used as benchmark to assess the impact and value of cloud computing in the supply chain. It is the cloud computing platform’s task to make the partners using the information service more easily and conveniently. To those middle and small-sized companies...

Words: 1009 - Pages: 5

Premium Essay

Green Mountain Coffee Roasters-Marketing Plan Erobinson

...Green Mountain Coffee Roasters, Inc. (GMCR) Prepared For Gary L. Payne, MBA Sam Houston State University Prepared By Eric Robinson Fall Semester 2013 Part I History The coffee and tea manufacturing industry has become a $70 billion annual global sales commodity (First Research, Industry Overview). Business continues to boom and coffee manufacturers are able to broaden their revenues by reaching new segments and geographic areas through creative marketing initiatives. According to First Research (8/12/2013), the US US coffee and tea manufacturing industry includes about 300 companies with an annual combined revenue of almost $12 billion. That equates to less than one third of the global annual sales. With Starbucks corralling the majority of the upscale retail coffee consumers; Dunkin’ Donuts, the blue-collar, no-frills brand coffee drinker; Green Mountain Coffee Roasters (GMCR) went looking for a way to capture the self-serve specialty coffee consumer in North America and Canada. This customer tends to be a gourmet beverage drinker who doesn’t compromise on taste but likes quickness and convenience. The GMCR state of the art eCommerce portal allows customers to create the ultimate coffee experience in the home, in the office, and in food service environments. GMCR is so committed to the outstanding coffee experience that they purchase some of the highest quality Arabica beans available from the world’s coffee producing regions and match it with the appropriate...

Words: 3533 - Pages: 15

Free Essay

Exam 2

...certain information, especially if that information is ambiguous. Answer Correct Answer: Selective perception Question 3 1.25 out of 1.25 points A local microbrewery is working on its methods of advertising, promoting and selling its product. This is an example of ________. Answer Correct Answer: a primary activity in the value chain Question 4 1.25 out of 1.25 points Which of the following did Nokia NOT do in responding to the crisis involving the fire at the Philips semiconductor plant, according to the Resilient Enterprise case? Answer Correct Answer: Threatened legal action against Philips if it didn't find alternative sources of supply Question 5 1.25 out of 1.25 points In most organizations, non-programmed decisions tend to be made by ________; while programmed decisions are made by ________. Answer Correct Answer: top managers; lower-level managers Question 6 0 out of 1.25 points Wernickskosherdills.com is in growth mode thanks to the tremendous demand for its product. Its executives must decide how much of its budget to allocate for hiring better salespeople, and how much to allocate for building new pickling facilities. This is an example of ________. Answer Correct Answer: priorities and multiple objectives Question 7 1.25 out of 1.25 points The sum of the ways an organization divides its labor into distinct tasks is called organizational ________. Answer Correct...

Words: 2268 - Pages: 10

Premium Essay

Waitrose.

...correction: prosperity built on credit • Demographic timebomb: avrg no of children per woman –1.5 • New superpowers: Brazil, China, India. • Battle for resources: energy, water, food consumption • Volatile climate: floods, heat waves, forest fires • Digital revolution: Internet, mobile phones Challenges for food firms (Denney-Finch, 2011) • Return to sales growth in Europe • Win a big share of emerging markets • Manage input costs • Make supply chains more sustainable & resilient to shocks • Build a stronger relationship with society Key challenge Building a strong relationship with society (& key stakeholders) • Getting closer to consumers / shoppers • Scepticism about large companies - CSR practices dunnhumby initiative  Structure 2005: Joint venture between KBS and dunnhumby  Mission To help small food and drink producers improve their businesses by developing a better understanding of consumer preferences  Delivery Model PhD studentships, funded by government and industry Capacity building to facilitate business planning and marketing decision-making that is driven by consumer insight Shoppers focusing more on value for money Store choice Product choice 1. Price 2. Fat content Improvements 1. Price 2. Local foods 3. Promotions 4. Discounters 1.Price 2.Layout 3. Brand 3.Accessible 4.Parking 4. Ingredients Source: Shopper Trends 2010 – Shopping in a Recession Increased reliance on promotions…  37%...

Words: 1626 - Pages: 7

Premium Essay

E Marketing

...will have a workshop-style exam review. Office hours for help on the day of the exam: I will be available on the day of the exam (October 8) 11: 00 a.m. to 12:20 am at my office (437 Cornell Hall) Mid-Term Exam Syllabus Lecture Topics: 1. Chapter 1: traditional marketing vs. Internet marketing, web 2.0 & 3.0, Cloud-computing Internet marketing paradigm and drivers of Internet marketing 2. Chapter 2: the supply chain, the value chain, virtual value chain 3. Chapter 3: business model, the value proposition * Do we need to know the specific types of business models: ex: brokerage, etc. * Yes 4. Chapter 4: direct marketing strategies, critical strategy elements, the front end vs. the back end, customer lifetime value: * Do we need to know the CLV equation and how to solve * Nope 5. Chapter 5: online brand building, media choice based on marketing objectives video marketing 6. Chapter 6: customer acquisition tools, online display advertising, online ad serving and online targeting (demographic-based, contextual, behavioral, and re-targeting), other acquisition techniques...

Words: 1285 - Pages: 6

Premium Essay

Supply Chain Risk Management

...Int. J. Production Economics 133 (2011) 25–34 Contents lists available at ScienceDirect Int. J. Production Economics journal homepage: www.elsevier.com/locate/ijpe Identifying risk issues and research advancements in supply chain risk management Ou Tang a,c, S. Nurmaya Musa a,b,n a Department of Management and Engineering, Link¨ping University, SE-581 83 Link¨ping, Sweden o o Department of Engineering Design and Manufacture, University of Malaya, 50603 Kuala Lumpur, Malaysia c School of Economics & Management, Tongji University, Shanghai 200092, PR China b a r t i c l e in fo Available online 3 July 2010 Keywords: Supply chain Risk management Citation/co-citation analysis abstract The purpose of this paper is to investigate the research development in supply chain risk management (SCRM), which has shown an increasing global attention in recent years. Literature survey and citation/ co-citation analysis are used to fulfil the research task. Literature survey has undertaken a thorough search of articles on selected journals relevant to supply chain operations management. Meanwhile, citation/co-citation analysis uses Web of Sciences database to disclose SCRM development between 1995 and 2009. Both the approaches show similar trends of rising publications over the past 15 years. This review has piloted us to identify and classify the potential risk associated with different flows, namely material, cash and information flows. Consequently, we identify some research...

Words: 8250 - Pages: 33

Free Essay

Engineering

...What is green building and why does it matter? For today’s Europe, green building represents one of the most significant and exciting opportunities for sustainable growth on both a national and a global scale. The design of our built environment impacts us all, as well as our economies and the natural environment, and Green Building Councils are driving its transformation towards sustainability. The design… ...of our homes is fundamental to our quality of life, comfort and how affordable they are to run ...of our workplaces impacts employee productivity, health and the prosperity of our companies ...of our schools leaves a life-long imprint on those who learn within them, influencing pupil concentration and how environmentally aware the next generation is ...of our hospitals affects patient recovery times and national health service bills ...of our cities and communities strongly determines their economic and social dynamics Green building… Takes an intelligent approach to energy • Minimising energy use in all stages of a building’s life-cycle, making new and renovated buildings more comfortable, less expensive to run and helping building users learn to be efficient too. • Integrating renewable and low carbon technologies to supply buildings’ energy needs, once design has maximised inbuilt and natural efficiencies. Why does it matter? Promotes health and well-being • Bringing a breath of fresh air inside, delivering high indoor air quality through...

Words: 1186 - Pages: 5

Premium Essay

Apecs

...The effects of APEC To ensure the safety of the economic leaders and delegates in Manila, tight security was enforced. This included road closures and rerouting schemes of major thoroughfares — such as EDSA and Roxas Boulevard — that resulted in traffic disruptions in The APEC lane along EDSA extension in Pasay City. the metro. Most motorists and commuters complained of the traffic schemes adjustments, which forced them to walk to their destination. Several airlines canceled their flights to make way for the arrival and departures of the APEC participants. Philippine Airlines said it lost an estimated P870 million, while Cebu Pacific lost around P400 million. A number of people also took to the streets and staged protests, denouncing the APEC and the leaders of its 21 member economies. Quiz: Can you recognize these world leaders? Was the summit a success? The Philippines reportedly allotted P10 billion to stage the week-long APEC activities. Ambassador Marciano Paynor Jr., director general of the APEC National Organizing Council, said the expenses in hosting the event was an investment. He added that the traffic and inconvenience the summit caused is "a little sacrifice compared to the benefits that we will gain out of our membership from APEC." Related: APEC gains not quantified, says economists But former Budget Secretary Benjamin Diokno said the P10 billion the government spent was too much. He said that it could have been cheaper if the APEC leaders' meeting was held outside...

Words: 16052 - Pages: 65