Managing the Risk of Supply Chain Disruption: Towards a Resilient Approach of Supply Chain Management

Abstract

Disruption risk has received increasing attention in the last few years, when it comes to global supply chains, the potential for disruption comes in many packages, from large-scale natural disasters and terrorist attacks to plant manufacturing fires, widespread electrical blackouts, and operational contingencies such as shipping ports too small to handle the flow of goods coming into a country. The reason is undoubtedly that, supply chain innovation over the past decade has focused on flexibility and responsiveness, with longer paths and shorter clock speeds, todaypsilas leaner, just-in-time globalized supply chains are more vulnerable than ever before to natural and man-made disasters, and there are more opportunities for disruption and a smaller margin for error if a disruption takes place. So, managing supply chain disruptions revolves around two goals: first, to thoroughly understand the potential of identified risks; and second, to increase the capacity of the supply chain - within reasonable limits - to sustain and absorb disruption without serious impact, a reality that creates greater demands on companies to keep supply chains flexible and integrate disruption risk management into every facet of supply chain operations.In this paper, we expressed out views in three steps, the first part, we delivered a framework for risks analyzing in supply chains, and second, we developed approaches on building resilient supply chains, and also gave some advices on how to build up resilient supply chains. In the third part, we provided Ericsson as a case to support our views.