Supply Chain Security Management

... It's essential to have a disciplined process in place to identify, prioritise, and manage the wide range of risks that can impact your supply chain (Dittman)

Information about Supply Chain Security Management

A number of developments over the last decade highlighted the importance of supply chain security management. There has been a series of catastrophic events with implications for societies and economies across the globe (Closs and McGarrell, 2004). For example, in 1999 a major earthquake hit Taiwan affecting the country’s semiconductor production capacity and telecommunications manufacturing industries for several consecutive months. Hurricanes in the US Gulf coast led to instability in oil supplies and prices due to damage to petroleum refineries and transportation infrastructure. Some recent non-natural disasters with economic implications include power grid failures and computer viruses (Autry and Bobbitt, 2008; Business Continuity Institute, 2011).

Disruptions to key operations can ripple throughout the supply chain and be particularly devastating. This applies particularly to just-in-time or similar supply chain models (Closs and McGarrell, 2004). Supply chain disruptions can result in a "devastating impact on shareholder value". Evidence shows that an average 40% decline in share price can occur due to supply chain disruptions (Dittman et al., 2010).

Return to Risk / Mitigation topic.

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