Source: Christopher & Peck (2004) Machine break-down Employee strike Order quantity policies Quality control Volatile customer-demand Wrong order-forecast Natural disasters Political instability Severe weather conditions Bankruptcy of supplier Quality problems at supplier Transportation failure
“ Supply chain disruptions are unplanned and unanticipated events that disrupt the normal flow of goods and materials within a supply chain ”
Supply chain disruptions: the occurrence of risk
Consist of: a trigger and the situation that emerges afterwards.
Source: Craighead et al. (2007), Wagner and Bode (2008)
Iceberg of disruptions Worldwide known disruptions 9/11, novel influenza H1N1 Region / country Piracy, Foot and mouth disease, Q-fever Individual (chain) disruptions Fire, strikes Disruptions that took place but were not in the press ‘ almost-disruptions’ Big customer threatens to leave Insolvable supplier saved from bankruptcy Huge reservoir with potential disruptions
Most frequently occurring disruptions in 2008-2009
Sudden drop in customer demand
Quality issues at the supplier
Poor logistics performance of suppliers (delivery dependability)
Severe weather conditions
IT-infrastructure problems (hardware, software)
Source: TNO-onderzoek: Risico’s en Kwetsbaarheden in Logistieke Ketens (2010)
Where did the disruptions come from? Source: TNO-onderzoek: Risico’s en Kwetsbaarheden in Logistieke Ketens (2010)
The disruption profile Source: Sheffi & Rice Jr. (2005)
Asbjørnslett, B. (2008). Assessing the vulnerability of supply chains, In: Zsidisin, G., Ritchie, B. (Eds.), Supply Chain Risk: A Handbook of Assessment, Management and Performance , New York: Springer, pp. 15-33
Chopra, S., Sodhi, M. (2004). Managing risks to avoid supply-chain breakdown, MIT Sloan Management Review , Vol. 46 No. 1, pp. 53-61
Christopher, M., Peck, H. (2004). Building the resilient supply chain, International Journal of Logistics Management , Vol. 15 No. 2, pp. 1-14
Craighead, C., Blackhurst, J., Rungtusanatham J., & Handfield, R. (2007). The severity of supply chain disruptions: design characteristics and mitigation capabilities, Decision Sciences, Vol. 38 No. l, pp. 131-156
Khemani, K. (2007) Bringing rigor to risk management. Supply Chain Management Review Vol. 11 No. 2, pp. 67-68.
Peck, H. (2006). Reconciling supply chain vulnerability, risk and supply chain management. International Journal of Logistics: Research and Applications, Vol. 9 No. 2, pp. 127-142.
Sheffi, Y., & Rice Jr., J.B. (2005). A supply chain view of the resilient enterprise, MIT Sloan Management Review , Vol. 47 No. 1, pp. 41-48
Vanany, I., Zailani, S., Pujawan, N. (2009). Supply Chain Risk Management: Literature Review and Future Research, International Journal of Information Systems and Supply Chain Management , Vol. 2 No. 1, pp. 16-33