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Contingency planning includes the steps necessary to ensure that the basic operations of a company can continue in the face of an emergency. Supply chain managers at all levels should be prepared to undertake elaborate plans that preserve the value of their supply chains in the case of a natural disaster. The first step in developing a contingency plan is collecting essential information about the supply chain. Evidence-based planning involving sensitivity analysis tools including case studies, simulation modeling, and other analytical techniques can be used to comprehend the impact of various scenarios on the value of the supply chain.
The supply chain organization supports the efficient and timely movement of materials, products, and finished goods (as well as services, information, and energy) within an organization and across organizations. The organization's structure and activities directly determine the nature of the process events and the interactions among those events.
Supply chain resilience is a concept that encompasses the ability of a supply chain to meet the demands of its customers in the face of any disruptions. Supply chains have always been highly adaptable and resilient to disruptions, but today, supply chains are increasingly connected and have more complex linkages. Supply chain resilience is becoming increasingly important to supply chain managers, as the risks of disruptions to supply chains continue to rise.
A supply chain is the sum of the procurement, manufacturing, distribution, and sales activities of a company that exist to deliver products to distribution centers, retail outlets, or directly to end customers. While the supply chain serves as a resilient mechanism for producing, distributing, and ultimately delivering an end product to consumers, supply chains are increasingly susceptible to disruptions caused by natural disasters and geopolitical instability. d2c66b5586