The challenge in the longer term is what to do with the workforce who need to be reskilled. husdal.com: Robust, Flexible, Agile, Resilient. 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). These risks are additionally aggravated by the global economic cri, This site has been dormant for more than five years now. Resilient and robust supply portfolios are compared in a supply chain under local and regional disruption risks. The first, resistance, defines the supply chain’s ability to delay a disruption and reduce the impact once the disruption occurs. This may often be the case after disruptions due to natural disasters or after loosing the only single-source supplier. How have delivery times been affected? It all starts with their supply chains. Menu. Do you know which parts of your supply chain are potentially affected? 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. Company executives are looking to more deeply understand their supply chains, shift from “just-in-time” to a more robust inventory management approach, and increase their supply chain … ahead-of-print. Without the need for commuting and travel expenses can we all operate more economically? We have been advising our clients to set up response teams to develop and implement mitigations to supply chain risks. Please remember that every project will be different to some extent, and the best advice we can give is to make sure the specifics are well understood. We encourage you to contact us for support in reviewing your project supply chain risks. The resilient supply chain requires two critical capacities : the capacity for resistance and the capacity for recovery. However, just as important to consider is the supply chain robustness, i.e. Assess the vulnerability of your production system. In a time of great uncertainty, ensuring a transparent and mutually beneficial supply chain relationship is the only route for success. What do we mean by a “resilient supply chain?” In the past, logistics leaders focused primarily on protecting their supply chain from disruption via a “shield and protect” approach. • Maximizing the expected profit given strategic risk management and tactical decisions. The framework in this post has been further refined in later posts: By being aware of these vulnerabilities, Cisco knew how to implement mitigation measures to make this kind of supply chain more resilient, too. Master’s(Thesis(in(Business(Administration (2015). Now that China is returning to business, will orders arrive soon? We model this goal with an objective function that trades off 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. 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. That is risk appetite. 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. Robust and Resilient supply chain are different in many ways. 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? The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains. 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. 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. its ability to be able to continue to function at some level during these periods. Yes, there are impacts, but they do not severely hamper the flow of the supply chain or supply network. 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. emerald insigh. About; Learn More; News & Events; FAQ; Search for: Search. Can you develop options to change to a different/local supplier? 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? Flexibility is the inherent capability to modify a current direction to accommodate and successfully adapt to changes in the environment, whereas robustness refers to the ability to endure such changes without adapting.Resilience, in essence, is the ability to survive these changes despite severe impact. Across industries, supply-chain resiliency has risen to the top of the C-Suite agenda. What does it mean to be a resilient organization? Now that everyone can work from home productively, do we need so many offices and overheads in our businesses? Consider not only international transport ways, but local as well. applicability and properties of robustness and resilience in the supply chain. Founded in 1989, EY provides advisory solutions across a diverse range of industries. 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. Note: 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. Are you prepared for new parts of the supply chain being affected? When a disruptive event happens, problems might ripple widely and rapidly through the system. These are: Have you assessed the critical items you need to continue to operate? That is the topic of The Resilient Organization, Aah...the intricacies of the English language. Are clear and robust communication protocols in place? Can you procure materials/equipment locally, potentially at higher cost but saving time versus delayed imports from Asia? Some of my previous research has shown that this construct is even more positively related with business performance than supply chain agility. 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. Flexibility is the ability to defer, abandon, expand, or contract any investment towards the desired goal. There will eventually need to be a correction in the supply chain pricing model and companies that can optimise production and costs will benefit. This could lead to a long-term reduction in SA mining opex costs, which would make their products more competitive again. Tips based on real-life use cases from the automotive and general manufacturing industries. Yes I will! “Rather than being lean, supply chains have accidentally become frail; they’re simply not resilient enough to react when things go wrong,” says Weiss. Robust, Flexible, Agile, Resilient. A resilient supply chain is impacted, but it is able to come back to where it was. For example, if a manufacturing facility was threatened by a natural disaster, companies could shift production to … Can you afford to lose them in the long run if they disappear completely? The second, recovery, defines the supply chain’s ability to recover from a disruption. Be clear on expectation and deliverables. Designed to Ensure a Resilient and Robust National Supply Chain and Manufacturing Base in the Future. 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. 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. Director Natural Resources, t: +44 (0)131 659 7900 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? A resilient supply chain is an essential element of the Risk Intelligent Enterprise™. Do you know in detail what services you are buying, who you are buying them from and under what contract? Using the results of the health check we can provide owners with a set of practical recommendations to maintain an efficient and sustainable supply chain. Example: switching suppliers or re-designing a product. 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. Am I going to revive it? Sundarakani, B., Pereira, V. and Ishizaka, A. It is time to build more robust and resilient supply chains—understanding, valuing, and incorporating resilience for the buyer, suppliers, and the workers across the value chain. Although these three terms are distinctively different it is practically impossible to draw a clear line between them as far as supply chains are concerned, saying that a supply chain is either this or that. The thickness of the supply chain arrow indicates how seriously impacted the supply is by these events. 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. Example: having a redundant production line, just in case. The COVID-19 crisis has exposed how efficiency in global supply chains came at the cost of resilience. The thick line symbolizes the supply chain, going from its current state “now” to a future state “future”. (2020), "Robust facility location decisions for resilient sustainable supply chain performance in the face of disruptions", The International Journal of Logistics Management, Vol. December 2011; ... A framework for the development and implementation of a resilient supply chain strategy is proposed, which illustrates the relevance of … husdal.com: Flexibility and Robustness (2004) Robust supply chain management. In a previous paper, back in 2004, I discussed the issue of Flexibility and robustness as options to reduce risk and uncertainty. Robust & resilient: How analytics keeps supply chains running ... Few parts of the business landscape feel the effect of a major crisis like a supply chain. However, new ways of working are being implemented fast. Resilience is not type but a parameter to calculate flexibility of Supply Chain towards changes in its design. Retrieved from The evolution and future of logistics and supply chain management: John Mangan, C. L. (2012). Are agreed supply chain performance monitoring systems in place? 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. A best-practice supply chain would in fact encompass all three, making it robust, flexible and resilient at the same time. A robust supply chain stays on course, so to speak. Why is it that we fear so much? Flexibility and robustness are two sides of the same coin, yet at the same time two distinctively different animals. There is no 'one size fits all' answer, and the level of pain your project is under will affect the recommendations given. Resilience is the ability of a system to return to its original state or move to a new desirable state after being disturbed. How much can alternative suppliers actually provide and to what amount are they reliant on Asia for their raw materials? 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. After featuring in Supply Chain Digital’s Top 10 Consulting Firms, we take a look at EY’s solutions and discover their tips for building a robust supply chain.. Yes, there are impacts, but they do not severely hamper the flow of the supply chain or supply network. Depending on where your project is located and the lockdown requirements in place, the impact on your supply chain will vary and may change significantly over the coming weeks and months. However, just as important to consider is the supply chain robustness , i.e. If you're looking to build an agile, robust and resilient supply chain, start here: • Categorize core and noncore operations, and analyze supplier risks. Insights for more collaborative, real-time planning from Microsoft and automotive supply chain leaders. We define supply chain robustness as the ability of a supply chain to resist or avoid change. But to have reliable and efficient supply chains, companies first must establish a strong supply chain ecosystem on which to base them. Are you tracking the status of every potentially impacted part of the supply chain? 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. 3. This post is based on my previous work in Example: switching suppliers or re … • A perishable multi-period multi-commodity ASC with seasonal supply under disruption. Lean Supply Chain is for longer period for products like usable of vehicle on the other hand Agile Supply Chain is for shorter period like fashion/ retail products. Example: having a redundant production line, just in case. 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. Let me explain the figure below. 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? 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. Will government support packages be enough to keep your supply chain afloat? De-confusing robustness, resilience, flexibility and agility, Robustness and flexibility as options to reduce uncertainty. Examples of supply chain risk management in action show the various paths leading companies are taking to prevent disruptions from derailing their operations. We are all in this together and finding the win-win solution is essential in the short-term. Theoretically, a resilient enterprise can be built by creating redundancies throughout the supply chain. In Part A of this series, we have seen the basic differences between Flexibility, Robustness and Resiliency characteristics of a Supply Chain ecosystem and how different supply chain entities are trying to be Resilient by adopting some short, medium, and long-term strategies. 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. 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