Flexible, Robust, and Resilient Supply Chain Flexible, Robust, and Resilient are the three management characteristics which are used in the context of any ecological, human, or industrial system. Be clear on expectation and deliverables. Multiple contracts and relationships mean that spend with each supplier could be unknown. Are robust reporting structures in place throughout the supply chain e.g sub-contractors report to the main contractor who reports to the project manager who reports to the client? If you're looking to build an agile, robust and resilient supply chain, start here: • Categorize core and noncore operations, and analyze supplier risks. Across industries, supply-chain resiliency has risen to the top of the C-Suite agenda. While owners may have a good handle on their tier one and two suppliers, they may not know who their tier three, four or five suppliers are. its ability to be able to continue to function at some level during these periods. husdal.com: Robust, Flexible, Agile, Resilient. These risks are additionally aggravated by the global economic cri, This site has been dormant for more than five years now. Resiliency refers to suppliers capacity to continue supplying parts in the face of random disruptions, whereas robustness aims at an equally good performance of a supply chain under varying operating conditions. The crash in oil price on top of COVID-19 has placed many firms in such a vulnerable position that a disaster recovery plan may be needed simply so that they can sustain operations. The paper will also serve as a basis for further research in this area, focusing on practical experiences of ways to make the supply chain resilient and robust. Tips based on real-life use cases from the automotive and general manufacturing industries. The thinner arrows indicate events that may or may not disrupt the supply chain. It all starts with their supply chains. As adjectives the difference between robust and resilient is that robust is evincing strength; indicating vigorous health; strong; sinewy; muscular; vigorous; sound; as, a robust body; robust youth; robust health while resilient is able to endure tribulation without cracking. De-confusing robustness, resilience, flexibility and agility, Robustness and flexibility as options to reduce uncertainty. However, just as important to consider is the supply chain robustness, i.e. The thickness of the supply chain arrow indicates how seriously impacted the supply is by these events. While it is impossible to determine the size and scale of government-enforced lockdowns in the short term, changing shift patterns have already been instigated and we see optimisation of effort with fewer people achieving the same results. Example: having a redundant production line, just in case. What does it mean? (2020), "Robust facility location decisions for resilient sustainable supply chain performance in the face of disruptions", The International Journal of Logistics Management, Vol. The challenge in the longer term is what to do with the workforce who need to be reskilled. Retrieved from The evolution and future of logistics and supply chain management: John Mangan, C. L. (2012). Four priority risk areas have been identified for immediate attention. It may be possible to regionalise your supply chain, but it will take a while to be fully able to implement for the longer term. Theoretically, a resilient enterprise can be built by creating redundancies throughout the supply chain. By being aware of these vulnerabilities, Cisco knew how to implement mitigation measures to make this kind of supply chain more resilient, too. Resilience is not type but a parameter to calculate flexibility of Supply Chain towards changes in its design. The COVID-19 crisis has exposed how efficiency in global supply chains came at the cost of resilience. ahead-of-print. Please visit our COVID-19 response page for all of our resources relating to the impact of COVID-19 on the construction sector. Are agreed supply chain performance monitoring systems in place? A resilient supply chain is impacted, but it is able to come back to where it was. Note: How have delivery times been affected? When we talk about supply chain resilience, we mean the ability of the supply chain to bounce back in the event of unexpected events, even smaller ones in the normal business process. Stay tuned, After more than 4 years with Incapsula I have no reason to question the security layer surrounding my website. The thick line symbolizes the supply chain, going from its current state “now” to a future state “future”. A robust supply chain minimizes disruption, which can cost delivering companies significant amounts of time and money, in addition to tarnishing their reputation. Robust and resilient strategies for a perishable agribusiness supply chain (ASC). That is risk appetite. Insights for more collaborative, real-time planning from Microsoft and automotive supply chain leaders. Master’s(Thesis(in(Business(Administration The strategic design of a robust supply chain has as goal the configuration of the supply chain structure so that the performance of the supply chain remains of a consistently high quality for all possible future scenarios. We encourage you to contact us for support in reviewing your project supply chain risks. Menu. The solution may be smaller, more agile freight services evaluated on a regular basis depending on what stage the transhipment ports are functioning at. For the oil and gas industry, the global supply chain is complex and highly interconnected. Are clear and robust communication protocols in place? What does it mean? Designed to Ensure a Resilient and Robust National Supply Chain and Manufacturing Base in the Future. With events such as the recent hurricanes showing just how quickly conditions can become hostile to production and shipping, these backup plans are more relevant than ever. In a previous paper, back in 2004, I discussed the issue of Flexibility and robustness as options to reduce risk and uncertainty. Aileen Jamieson This may often be the case after disruptions due to natural disasters or after loosing the only single-source supplier. Since then a new term has emerged: resilience, and today I would like to compare these three terms. Focus on resilience: Supply chain for new times Bosch’s Business continuity Dashboards offer a robust decision support system that uses data from the existing IT systems, like ERP, vendor portal etc. Finally I have found the time and will and inspiration to write again. Now that everyone can work from home productively, do we need so many offices and overheads in our businesses? Paper type husdal.com: Robustness, resilience, flexibility and agility (2009) Consistency in the supply chain is crucial to a company’s overall performance, but can this be attained when the factors that drive it seem to be out of the company’s direct control? Are you able to offer better commercial terms to ensure you sustain your critical suppliers. Founded in 1989, EY provides advisory solutions across a diverse range of industries. Yes, there are impacts, but they do not severely hamper the flow of the supply chain or supply network. A robust supply chain is able to withstand disturbances, maintain its original structure, and stay functional in uncertainties; while a resilient supply chain can quickly return to its original state or move to a new and more desirable state after being disrupted (Dong, 2006, Tang, 2006b, Christopher and Peck, 2004, Klibi and Martel, 2012). There will eventually need to be a correction in the supply chain pricing model and companies that can optimise production and costs will benefit. Example: switching suppliers or re … Robustness is the ability to accommodate any uncertain future events or unexpected developments such that the initially desired future state can still be reached. The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains. A flexible supply chain is able to accommodate disruptions by changing its course and even the target, the flow itself (the throughput) is not impacted. Why is it that we fear so much? How much risk do we think w, The Global Risk Report 2015 highlights and reflects upon a wide range of cross-cutting challenges that can threaten social stability. e: firstname.lastname@example.org, COVID-19 learnings from Asia for the construction sector, Five ways to mitigate construction supply chain disruptions, COVID-19: Managing the operational impact in the natural resources industries, Supply chain resilience versus robustness. I’d say all three supply chain would be needed to ensure a company is ready to combat any impact that may arise in the future. The resilient supply chain requires two critical capacities : the capacity for resistance and the capacity for recovery. Supply chain management is a delicate balancing act in these unpredictable times – on the one hand, there is pressure to keep the supply chain as cost efficient as possible, while on the other, it needs to be flexible and resilient in the face of unforeseen events. This kind of supply chain can be less adaptive to operational changes. However, new ways of working are being implemented fast. Robust and Resilient supply chain are different in many ways. In the very near future. These are: Have you assessed the critical items you need to continue to operate? The company prides itself … Flexibility and consideration for all members of the supply chain are the two core elements of a robust and effective supply chain. As isolation efforts continue around the world, supply chain disturbances are impacted not only by logistics constraints but also people constraints. For example in the USA, ports in Louisiana are filling up as China containers are now starting to arrive, but either there are no truckers available to deliver them, or the receiving companies are closed and unable to accept them. The first, resistance, defines the supply chain’s ability to delay a disruption and reduce the impact once the disruption occurs. How much can alternative suppliers actually provide and to what amount are they reliant on Asia for their raw materials? With no certainty of how long restrictions may be in place, what steps should you be taking to lower supply chain risk on your projects? A supply chain ecosystem includes everything from the retailer to the technology it uses and the shippers it partners with to move a product from point A to B. Key questions we advise you to address are: With the commercial distress that contractors and suppliers are currently under, there is a significant risk to continuity of supply. Consider also the goods being transported, as initially there will be a massive change in what is imported, so while China is delivering orders of electronics and fashion ordered before the outbreak, there is potentially no market for these now, adding to the congestion. When we talk about supply chain resilience, we mean the ability of the supply chain to bounce back in the event of unexpected events, even smaller ones in the normal business process. The question here is how fast and how effectively the major shipping lines can implement new routes or change trading patterns and tonnages to get your materials to you. Have you engaged with your shipping suppliers to understand alternative offerings? Resilient and robust supply portfolios are compared in a supply chain under local and regional disruption risks. Example: switching suppliers or re-designing a product. Examples of supply chain risk management in action show the various paths leading companies are taking to prevent disruptions from derailing their operations. Risk Appetite versus Risk Attitude has brought a whole new perspective on risk and risk management to my attention: How much risk do we want to take? Example: having a redundant production line, just in case. Will they survive the unexpected and rapid fall in revenue? Some of my previous research has shown that this construct is even more positively related with business performance than supply chain agility. Do you know in detail what services you are buying, who you are buying them from and under what contract? There is no 'one size fits all' answer, and the level of pain your project is under will affect the recommendations given. However, just as important to consider is the supply chain robustness , i.e. its ability to be able to continue to function at some level during these periods. December 2011; ... A framework for the development and implementation of a resilient supply chain strategy is proposed, which illustrates the relevance of … A resilient supply chain is an essential element of the Risk Intelligent Enterprise™. In a time of great uncertainty, ensuring a transparent and mutually beneficial supply chain relationship is the only route for success. Without the need for commuting and travel expenses can we all operate more economically? 3. Are you tracking the status of every potentially impacted part of the supply chain? Assess the vulnerability of your production system. Which strategy that works best would depend not only on the supply chain in question as a whole, but also which part of the supply chain that may be vulnerable. Can you afford to lose them in the long run if they disappear completely? References Ballou, R. H. (2007). Not supply (chain) security, but the security of supp, The twelve future trends that will shape value chains and supply chain management during this decade, So far I have reviewed "international" literature and web sites, and it is only fitting that now it. Frank Furedi shows how the notion of all kinds of vulnerability and possibilistic (worst likely) risk thinking has dethroned probabilistic (most likely) risk thinking. (2015). “Rather than being lean, supply chains have accidentally become frail; they’re simply not resilient enough to react when things go wrong,” says Weiss. We define supply chain robustness as the ability of a supply chain to resist or avoid change. What does it mean to be a resilient organization? applicability and properties of robustness and resilience in the supply chain. Here are some top tips in managing and creating a robust and effective supply chain, with experience and advice from the largest FTSE listed British IT service provider with over a 30-year heritage in IT and information enablement. Yes I will! A robust supply chain stays on course, so to speak. The framework in this post has been further refined in later posts: A flexible supply chain is able to accommodate disruptions by changing its course and even the target, the flow itself (the throughput) is not impacted. Over-complicated processes can be detrimental to the effective management of the supply chain.
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