Vol. 15, No. 2, pp1-13, 2004 | Martin Christopher and Helen Peck
The paper "Building the Resilient Supply Chain" by Martin Christopher and Helen Peck from Cranfield School of Management discusses the importance of creating resilient supply chains in today's uncertain and turbulent market environment. The authors highlight that as supply chains become more complex due to global sourcing and lean manufacturing, the risk of disruptions increases. They emphasize the need for supply chain managers to balance cost pressures and efficiency with effective management of market-driven service requirements and routine supply chain failures.
The paper outlines the dynamic nature of modern supply chains, which are interconnected networks of firms and industries. It highlights the importance of efficient transportation and communication systems and the need for better internal process management and open information flows. The authors also discuss the challenges posed by unpredictable events such as natural disasters, industrial disputes, terrorism, and geopolitical conflicts.
The research is based on a UK government-funded program that aimed to increase the resilience of economic activity to potential threats. The study draws on insights from various industries, including food retailing, oil and petrochemicals, pharmaceuticals, packaging, electronics, transport services, and automotive spares. It focuses on developing a managerial agenda for identifying and managing supply chain risks.
The paper defines supply chain resilience as the ability of a system to return to its original state or move to a new, more desirable state after being disturbed. It categorizes supply chain risks into five categories: internal processes, controls, demand, supply, and environment. The authors recommend strategies for improving supply chain resilience, including supply chain (re)engineering, collaboration, agility, and the creation of a risk management culture.
Key recommendations include understanding the network of suppliers and customers, maintaining multiple sources of supply, and implementing streamlined processes and reduced lead times. The authors argue that supply chain resilience requires a high level of collaboration and a culture of risk management that extends beyond corporate risk and business continuity management.
The paper concludes by emphasizing the urgent need for business leaders to address these challenges and suggests that a structured approach to managing supply chain risk is essential for improving resilience.The paper "Building the Resilient Supply Chain" by Martin Christopher and Helen Peck from Cranfield School of Management discusses the importance of creating resilient supply chains in today's uncertain and turbulent market environment. The authors highlight that as supply chains become more complex due to global sourcing and lean manufacturing, the risk of disruptions increases. They emphasize the need for supply chain managers to balance cost pressures and efficiency with effective management of market-driven service requirements and routine supply chain failures.
The paper outlines the dynamic nature of modern supply chains, which are interconnected networks of firms and industries. It highlights the importance of efficient transportation and communication systems and the need for better internal process management and open information flows. The authors also discuss the challenges posed by unpredictable events such as natural disasters, industrial disputes, terrorism, and geopolitical conflicts.
The research is based on a UK government-funded program that aimed to increase the resilience of economic activity to potential threats. The study draws on insights from various industries, including food retailing, oil and petrochemicals, pharmaceuticals, packaging, electronics, transport services, and automotive spares. It focuses on developing a managerial agenda for identifying and managing supply chain risks.
The paper defines supply chain resilience as the ability of a system to return to its original state or move to a new, more desirable state after being disturbed. It categorizes supply chain risks into five categories: internal processes, controls, demand, supply, and environment. The authors recommend strategies for improving supply chain resilience, including supply chain (re)engineering, collaboration, agility, and the creation of a risk management culture.
Key recommendations include understanding the network of suppliers and customers, maintaining multiple sources of supply, and implementing streamlined processes and reduced lead times. The authors argue that supply chain resilience requires a high level of collaboration and a culture of risk management that extends beyond corporate risk and business continuity management.
The paper concludes by emphasizing the urgent need for business leaders to address these challenges and suggests that a structured approach to managing supply chain risk is essential for improving resilience.