Supply Chain Risk - Catastrophic Disruptions

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Supply Chain Risk - Catastrophic Disruptions
Background
A supply chain is all the activities that produce or provide a product or a service to a customer (Reid & Sanders, 2010). Historically supply chain management has been about abating cost. Managing supply chain cost is key strategic planning to stay competitive in a global market. All organizations have a supply chain. A supply chain includes external, internal, incoming, and outgoing. External and internal supply chains are people, parts, raw material, raw foods, information, development of people and projects, engineering, labor, finished products, and components of products. Managing incoming supplies, use, storage, distribution and efficiently, to achieve maximum value of each. In order to be competitive and sustainable companies must develop and be constantly prepared to be agile with their supply chains (Milliken, 2012).
Malik, Niemeyer, and Ruwadi (2011) defined supply change management as an engineered system that mass-produced products. Organizations took advantage of moving their supply and manufacturing to low wage countries and emerging markets (Malik, et al., 2011). Uncontrollable events have made some of these markets of supply chains risky. The ability to foresee a change in the market and prepare to be more agile is a must if supply chains, due to cost, are to survive (Malik, et al., 2011).
Supply chain cost can change quickly and without warning. Supply Chains are complex and interdependent. Interdependencies make supply chains susceptible to economic changes, political changes, employment issues, and constant change. Business focused singly on efficiency gains and cost reductions during the growth of the 1908s (Stecke & Kumar, 2009). Managers foc...

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Shnits, B., (2010). Methods for activating the decision-making process that is used for controlling flexible manufacturing systems. International Journal of Production Research, 48 (24), 7437-7462. Doi10:1080/00207540903436703
Wildgoose, N., Brennan, P., & Thompson, S. (2012). Understanding your supply chain to reduce the risk of supply chain disruption. Journal of Business Continuity & Emergency Planning, 6(1), 55-67. Retrieved, from http://www.ncbi.nlm.nih.gov
Xerox, (2013).
Yang, B., Yang, Y. (2010). Postponement in supply chain risk management: A complexity perspective. International Journal of Production Research.48 (7), 1901-1912. doi: 10.1080/00207540902791850.

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