Supply network
A supply network is a pattern of
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Resilient supply networks
A resilient supply network effectively aligns its strategy, operations, management systems, governance structure, and decision-support capabilities so that it can uncover and adjust to continually changing risks, endure disruptions to its primary earnings drivers, and create advantages over less adaptive competitors.[1][2] Moreover, it has the capability to respond rapidly to unforeseen changes, even chaotic disruption. The resilience of a supply network is the ability to bounce back – and, in fact, to bounce forward with speed, determination and precision. In recent studies, resilience is regarded as the next phase in the evolution of traditional, place-centric enterprise structures to highly virtualized, customer-centric structures that enable people to work anytime, anywhere.[3][4]
Resilient supply networks should align its strategy and operations to adapt to risk that affects its capacities. There are 4 levels of supply chain resilience:
- reactive supply chain management.
- internal supply chain integration with planned buffers.
- collaboration across extended supply chain networks.
- a dynamic supply chain adaptation and flexibility.[5]
Strategic resilience
From the strategic resilient viewpoint, a supply network must dynamically reinvent business models and strategies as circumstances change. It is not about responding to a one-time crisis, or just having a flexible supply chain. It is about continuously anticipating and adjusting to discontinuities that can permanently impair the value preposition of a core business with focus on delivering customer satisfaction. Strategic resilience requires continuous innovation with respect to product structures, processes, but also corporate behaviour. Renewal can be regarded as the natural consequence of a supply network’s innate strategic resilience.[6]
Operational resilience
In terms of operational resilience, the supply networks must respond to the ups and downs of the business cycle or to quickly rebalance product-service mix, processes, and supply chain, by bolstering enterprises agility, flexibility and robustness in the face of changing environments.[7][8][9]
See also
- Document automation in supply chain management & logistics
- Supply network operations
- Value network
- Value network analysis
- Logistics
References
- ^ Anand, G. and Ward, P., 2004. Fit, Flexibility and Performance in Manufacturing: Coping with Dynamic Environments. Production and Operations Management Journal, 13 (4), pp. 369-385
- ^ Starr, R., Newfrock, J. and Delurey, M., 2002. Enterprise Resilience: Managing Risk in the Networked Economy. Strategy+business, 30
- ^ Bell, M.A., 2002. The Five Principles of Organizational Resilience. Gartner, Inc.
- ^ Christopher, M. and Peck, H., 2004. Building the Resilient Supply Chain, International Journal of Logistics Management, 15(2)
- ^ "The Four Levels of Supply Chain Maturity". 27 August 2013.
- ^ Hamel, G. and Välikangas, L., 2003. The Quest for Resilience. Harvard Business Review.
- ^ Mallak, L., 1998. Putting Organizational Resilience to Work. Industrial Management, November-December.
- ^ Robb, D., 2000. Building Resilient Organizations. OD Practitioner, vol. 32(3).
- ^ Coutou, D.L., 2002. How Resilience Works. Harvard Business Review, May.