A new white paper from WisdomNet reviews the dangers lurking in today’s supply chains and offers steps that can be taken to minimize long-term damage of disruptions. Increased globalization of supply and consumer markets, along with the trend toward outsourcing have contributed to more complex and inherently risky supply chains, notes the report’s author John Murphy, WisdomNet operations practice leader.
"Our operational definition of resilience is the ability to adapt and recover. Think of this as strong but not brittle, like a shock absorber that cushions passengers against jolts from the road while enabling the vehicle to smoothly drive on," he writes.
The 40-page report reviews five factors that have a significant impact on supply chain resilience:
1. Supply chain design
2. A focus on business process management to enhance capability across the supply chain
3. Visibility to demand and supply throughout the supply chain
4. Supplier relationship management
It goes on to identify opportunities to build resiliency into the supply chain and outlines how to prepare and execute business continuity plans.