Toward a resilient Supply Chain with supply disturbances

Abstract

The Supply Chain (SC) environment is changing. The SC entities exhibit ever increasing levels of complexity and are adopting new philosophies and management practices with the objective of increasing levels of competitiveness. In recent years there has been an increase in the likelihood of disturbances that affect the normal operation of the SCs. These disturbances can negatively affect the SCs, making them vulnerable and reducing their competitiveness, which is a critical factor to the success of organizations/SCs. Therefore, it is fundamental that SCs become resilient to disturbances. Managers must identify the likelihood of the occurrence and severity of disturbances, and take appropriate measures (implement management strategies) to respond to each disturbance, thereby reducing the negative effects of such disturbances on the SC. In this paper we will discuss proactive and reactive management strategies that can be adopted by the SC to make it resilient to disturbances at the supply side.