Kouvelis et al. (2006) view SCRM in terms of managing the uncertainty of demand, supply and costs. Carter and Rogers (2008) define SCRM as “the ability of a firm to understand and manage its economic, environmental, and social risks in the supply chain” which could be materialised by the adoption of contingency planning and having a resilient and agile supply chains.
There are also other notations related to risk management in supply chains. Rice and Caniato (2003) define supply chain resilience as the ability of an organisation “to react to an unexpected disruption and maintain operations after the event”. Resilience can be achieved by employing high flexibility and adequate redundancy in the organisation. A more content oriented definition of resilience as “the ability of a system to return to its original state or move to a new, more desirable state after being disturbed” is provided by Christopher and
Peck (2004). To Peck (2006), resilience brings the concept of an organisation’s “ability to absorb or mitigate the impact of the disturbance”. Contingency planning, which is interchangeably referred to as business continuity planning, is an approach to prepare for the possibility of future emergency or disruption. This approach involves continuous supplier assessment, development and maintenance of
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Interestingly, they include the time and the frequency of risk along with the common risk dimensions, probability and impact. The risk dimension of time is viewed as the speed of the event, the speed of losses and the time for detection of the events. This time perspective follows the same ideas as in Sheffi and Rice (2005), where the authors describe the disruption profile by associating supply chain performance with time. Both studies stress the significance of time to risk
...n Empirical Comparison of Anticipatory and Response Based Supply chain Strategies.” The International Journal of Logistics Management. 9: 2; 21-33. Lair, Noor Ajian Mohd, Awaluddin Mohamed Shaharoun and Mohamed Shariff Nabi Baksh, “JIT Implementation across A Supply Chain and It effects on Inventory Distribution”, http://www.moste.gov.my/kstas/NSFWorkshop/NSF/nsf%5CAAI16.DOC Lenzini, Joshua M (2002) “The Army's answer to supply chain management Army Logistician”; Fort Lee; Sep/Oct 2002 Li, Yuan, Fan, Zhiping and Zhao, Xuan (1999). “An Integrated Framework of Supply chain Management System.” Software Engineering Conference 1999. Proceeding sixth Asia Pacific. 196 – 199 Pagh, Janus D and Martha C Cooper (1998) “Supply chain postponement and speculation strategies: How to choose the right strategy”, Journal of Business Logistics, Issue # 2, Volume 19, Pg. 13-33.
It was C S Holling in 1973 that introduced the term ‘Resilience’ into ecological literature as a way of understanding non-linear dynamics observed in the ecosystem. Resilience theory is referred to the capacity of a social ecological system to withstand shock and to re-build and re-new itself. According to C S Holling father of resilience theory “whatever you do climate is going to change, some of them will be sudden, some of them will be crisis but in fact these are opportunities for people to learn on how to deal with and then turn the crisis into opportunity”. Resilience is structured around acceptance of disturbance. According to Brian Walker “Resilience is the capacity of a system to undergo change and still retain its basic function and structure. In other words it is the capacity to undergo some change without crossing a threshold into a different system regime”. C S Holling defines the behaviour of ecosystem in two different ways: stability and resilience. According to him “resilience determines the persistence of the relationships within the system and is a measure of the ability of the systems to absorb changes of state variables, driving variables, parameters and still persist” . Resilience is a part of the system and stability refers to the ability of the system to return to the original position after the disturbance . According to C S Holling there are two components that are important in the system they are cyclical behaviour and its frequency and amplitude, and the configuration of forces caused by the positive and negative feedback relations. Resilience is about withstanding shocks like climate change or financial crisis and turn the circumstance into an opportunity or innovation.
The term resilience has recently become a popular topic, and somewhat of a buzz word in popular psychology. It is a term that is commonly thrown around; however, the literature behind it is less commonly discussed. This paper explores the various concepts of resilience as well as the contributing factors. The factors that contribute to resilience include both those which are internal and external to the individual. The internal factors explored include those that are part of the individual’s internal emotional and mental state, and the external factors explored include those associated with economic security and relationships.
Resiliency is an important quality for successful leaders to have. However, leaders are often challenged with considerations of “how do I help others navigate the body slams of life? How do I help the organization and people I lead is recovered from changing market conditions, tragic circumstances, perplexing dilemmas? How do I bounce back and how do I help others do the same?” (Dees, 2013, p. 31). These among other considerations present a challenge to the leadership of an organization.
Resiliency is the ability to bounce back or keep going on after the occurrence of unfortunate circumstances or events of adversity. Students’ resilience can have an immense effect on their ability to handle academic and emotional issues. For example, students with resilience are more optimistic, cooperative, energetic, helpful, inquisitive, and on-task. They’re more likely to overcome instances of adversity such as academic and emotional issues. Students who have resilient attitudes are set apart from their peers whom are conversely alienated from academic success. When students have a lack of resilience to academic challenges and setbacks, they often give up and have a prolonged sense of failure and discouragement that negatively affects their ability to persevere.
Kersten, W., & Bemeleit, B. (2006). Managing risks in supply chains: How to build reliable collaboration in logistics. Berlin: Erich Schmidt.
Companies are always looking for ways to make sure an operation runs continuously no matter what the obstacles are. Contingency is like a mechanist using oil to ensure that the machine runs smoothly. Doing the right thing involves a series of complex contingency plans. There is no one answer to the issue because variables are constantly changing. When the
Modern day organizations have to constantly change to meet the demands of customers. Workers have to change with the organizations to be able to perform new functions and complete new sophisticated tasks.
...y plans to react to the unforeseen. Implementing good contingency plans in conjunction with a robust PDCA cycle is a great step toward success for a company in the global market place.
Business continuity planning and Disaster recovery planning are terms companies sometimes use interchangeably. Although they can be considered related, they are not the same thing. The "Disaster Recovery Plan" deals more with the restoration of computer systems, software and connections to full functionality under a variety of damaging or interfering external conditions. Business Continuity is a more comprehensive ...
In regards to contingency planning, there are two key definitions. A contingency plan itself is “A plan used by an organization or business unit to respond to a specific systems failu...
As John Brown, Director of Risk Management Supply Chain and Technical at Coca-Cola, states, this supply chain strives to prevent any possible dangers that can result from their ongoing expansion. “This approach ensures that risks are identified and managed at the local level, which in itself is true risk management across the enterprise. The sweet spot is where we can identify systemic risks across multiple entities and then apply higher level resources to solve these risks once, instead of multiple times, and with sometimes different approaches”
represent the point in the supply chain at which goods and conveyances are most vulnerable.
Your company's disaster recovery plan should include three main types of measures: prevention, detection and correction. Preventive measures designed to reduce or prevent incidents from occurring. These measures may include storing data supported and offsite, use a surge protector, installing generators and conducted a routine inspection Measures that can detect or disclose detective unwanted items. These measures include the installation of fire alarm, use up-to-date antivirus software and conduct employee training sessions. Then, corrective measures are focused on establishing or restoring the system after a disaster.
19. Sodhi, Sunil Chopra and ManMohan S. Managing Risk to Avoid Supply Chain Breakdown. MITSloan Management Review. [Online] October 15, 2004. [Cited: February 25, 2010.] http://sloanreview.mit.edu/the-magazine/articles/2004/fall/46109/managing-risk-to-avoid-supplychain-breakdown/.