Have you engaged with your shipping suppliers to understand alternative offerings? Do you know which parts of your supply chain are potentially affected? Flexible, Robust, and Resilient Supply Chain Flexible, Robust, and Resilient are the three management characteristics which are used in the context of any ecological, human, or industrial system. If you're looking to build an agile, robust and resilient supply chain, start here: • Categorize core and noncore operations, and analyze supplier risks. Consider also the goods being transported, as initially there will be a massive change in what is imported, so while China is delivering orders of electronics and fashion ordered before the outbreak, there is potentially no market for these now, adding to the congestion. Let me explain the figure below. This may often be the case after disruptions due to natural disasters or after loosing the only single-source supplier. The solution may be smaller, more agile freight services evaluated on a regular basis depending on what stage the transhipment ports are functioning at. A resilient supply chain is an essential element of the Risk Intelligent Enterprise™. As adjectives the difference between robust and resilient is that robust is evincing strength; indicating vigorous health; strong; sinewy; muscular; vigorous; sound; as, a robust body; robust youth; robust health while resilient is able to endure tribulation without cracking. The resilient supply chain requires two critical capacities : the capacity for resistance and the capacity for recovery. Have you calculated the financial and time impact of every critically affected part of your supply chain on your project? December 2011; ... A framework for the development and implementation of a resilient supply chain strategy is proposed, which illustrates the relevance of … For example in the USA, ports in Louisiana are filling up as China containers are now starting to arrive, but either there are no truckers available to deliver them, or the receiving companies are closed and unable to accept them. A best-practice supply chain would in fact encompass all three, making it robust, flexible and resilient at the same time. Insights for more collaborative, real-time planning from Microsoft and automotive supply chain leaders. But to have reliable and efficient supply chains, companies first must establish a strong supply chain ecosystem on which to base them. The thickness of the supply chain arrow indicates how seriously impacted the supply is by these  events. We have been advising our clients to set up response teams to develop and implement mitigations to supply chain risks. Robust supply chain management. • Maximizing the expected profit given strategic risk management and tactical decisions. Since then a new term has emerged: resilience, and today I would like to compare these three terms. Can you afford to lose them in the long run if they disappear completely? Are robust reporting structures in place throughout the supply chain e.g sub-contractors report to the main contractor who reports to the project manager who reports to the client? husdal.com: Robust, Flexible, Agile, Resilient. Across industries, supply-chain resiliency has risen to the top of the C-Suite agenda. Lean Supply Chain is for longer period for products like usable of vehicle on the other hand Agile Supply Chain is for shorter period like fashion/ retail products. As isolation efforts continue around the world, supply chain disturbances are impacted not only by logistics constraints but also people constraints. Are clear and robust communication protocols in place? However, just as important to consider is the supply chain robustness , i.e. There will eventually need to be a correction in the supply chain pricing model and companies that can optimise production and costs will benefit. We define supply chain robustness as the ability of a supply chain to resist or avoid change. Here are some top tips in managing and creating a robust and effective supply chain, with experience and advice from the largest FTSE listed British IT service provider with over a 30-year heritage in IT and information enablement. The crash in oil price on top of COVID-19 has placed many firms in such a vulnerable position that a disaster recovery plan may be needed simply so that they can sustain operations. Robustness is the ability to accommodate  any uncertain future events or unexpected developments such that the initially desired future state can still be reached. What does it mean? its ability to be able to continue to function at some level during these periods. Supply chain management is a delicate balancing act in these unpredictable times – on the one hand, there is pressure to keep the supply chain as cost efficient as possible, while on the other, it needs to be flexible and resilient in the face of unforeseen events. A flexible supply chain is able to accommodate disruptions by changing its course and even the target, the flow itself (the throughput) is not impacted. A robust supply chain stays on course, so to speak. Now that everyone can work from home productively, do we need so many offices and overheads in our businesses? The thick line symbolizes the supply chain, going from its current state  “now” to a future state “future”. Why is it that we fear so much? • A perishable multi-period multi-commodity ASC with seasonal supply under disruption. In the very near future. 3. References Ballou, R. H. (2007). While it is impossible to determine the size and scale of government-enforced lockdowns in the short term, changing shift patterns have already been instigated and we see optimisation of effort with fewer people achieving the same results. Keywords –Lean, Six Sigma, supply chain management, resilient, robust, demand chain risk. Finally I have found the time and will and inspiration to write again. Company executives are looking to more deeply understand their supply chains, shift from “just-in-time” to a more robust inventory management approach, and increase their supply chain … These risks are additionally aggravated by the global economic cri, This site has been dormant for more than five years now. Retrieved from The evolution and future of logistics and supply chain management: John Mangan, C. L. (2012). Are you able to offer better commercial terms to ensure you sustain your critical suppliers. Can you procure materials/equipment locally, potentially at higher cost but saving time versus delayed imports from Asia? Without the need for commuting and travel expenses can we all operate more economically? The second, recovery, defines the supply chain’s ability to recover from a disruption. Which strategy that works best would depend not only on the supply chain in question as a whole, but also which part of the supply chain that may be vulnerable. Will government support packages be enough to keep your supply chain afloat? The company prides itself … A flexible supply chain is able to accommodate disruptions by changing its course and even the target, the flow itself (the throughput) is not impacted. Assess the vulnerability of your production system. Example: switching suppliers or re-designing a product. Focus on resilience: Supply chain for new times Bosch’s Business continuity Dashboards offer a robust decision support system that uses data from the existing IT systems, like ERP, vendor portal etc. Our procurement health check provides a complete view of your current procurement organisation, processes, spend patterns and performance. Are agreed supply chain performance monitoring systems in place? By being aware of these vulnerabilities, Cisco knew how to implement mitigation measures to make this kind of supply chain more resilient, too. Will they survive the unexpected and rapid fall in revenue? Tips based on real-life use cases from the automotive and general manufacturing industries. How much risk do we think w, The Global Risk Report 2015 highlights and reflects upon a wide range of cross-cutting challenges that can threaten social stability. Introduction. I’d say all three supply chain would be needed to ensure a company is ready to combat any impact that may arise in the future. However, new ways of working are being implemented fast. Risk Appetite versus Risk Attitude has brought a whole new perspective on risk and risk management to my attention: How much risk do we want to take? Do you know in detail what services you are buying, who you are buying them from and under what contract? When a disruptive event happens, problems might ripple widely and rapidly through the system. Clearly there are many influences that may look to break a robust supply chain, but by ensuring expectations, deliverables and relationships are understood and trusted by all – the capacity to break the chain is reduced. Please visit our COVID-19 response page for all of our resources relating to the impact of COVID-19 on the construction sector. ahead-of-print. Are you prepared for new parts of the supply chain being affected? The supply chain will need to invest in automation and increase optimisation to reduce costs. Next steps to ensure resiliency in your supply chain strategy. Resilient and robust supply portfolios are compared in a supply chain under local and regional disruption risks. There is no 'one size fits all' answer, and the level of pain your project is under will affect the recommendations given. Flexibility is the inherent capability to modify a current direction to accommodate and successfully  adapt to changes in the environment, whereas robustness refers to the ability to endure such changes  without adapting.Resilience, in essence, is the ability to survive these changes despite severe impact. However, just as important to consider is the supply chain robustness, i.e. When we talk about supply chain resilience, we mean the ability of the supply chain to bounce back in the event of unexpected events, even smaller ones in the normal business process. Not supply (chain) security, but the security of supp, The twelve future trends that will shape value chains and supply chain management during this decade, So far I have reviewed "international" literature and web sites, and it is only fitting that now it. About. For example, if a manufacturing facility was threatened by a natural disaster, companies could shift production to … This kind of supply chain can be less adaptive to operational changes. Master’s(Thesis(in(Business(Administration That is the topic of  The Resilient Organization, Aah...the intricacies of the English language. Menu. Can you develop options to change to a different/local supplier? Key questions we advise you to address are: With the commercial distress that contractors and suppliers are currently under, there is a significant risk to continuity of supply. Now that China is returning to business, will orders arrive soon? De-confusing robustness, resilience, flexibility and agility, Robustness and flexibility as options to reduce uncertainty. With events such as the recent hurricanes showing just how quickly conditions can become hostile to production and shipping, these backup plans are more relevant than ever. Please remember that every project will be different to some extent, and the best advice we can give is to make sure the specifics are well understood. Flexibility and robustness are two sides of the same coin, yet at the same time two distinctively different  animals. How have delivery times been affected? It may be possible to regionalise your supply chain, but it will take a while to be fully able to implement for the longer term. Yes, there are impacts, but they do not severely hamper the flow of the supply chain or supply network. husdal.com: Flexibility and Robustness (2004) Using the results of the health check we can provide owners with a set of practical recommendations to maintain an efficient and sustainable supply chain. Consider not only international transport ways, but local as well. Resilience is not type but a parameter to calculate flexibility of Supply Chain towards changes in its design. What does it mean to be a resilient organization? Over-complicated processes can be detrimental to the effective management of the supply chain. A.C.T.I.V.E supply chains are more than digital supply chains, they are cornerstones for ensuring high supply chain autonomy. emerald insigh. Designed to Ensure a Resilient and Robust National Supply Chain and Manufacturing Base in the Future. The challenge in the longer term is what to do with the workforce who need to be reskilled. A resilient supply chain is impacted, but it is able to come back to where it was. What does it mean? While owners may have a good handle on their tier one and two suppliers, they may not know who their tier three, four or five suppliers are. We model this goal with an objective function that trades off The strategic design of a robust supply chain has as goal the configuration of the supply chain structure so that the performance of the supply chain remains of a consistently high quality for all possible future scenarios. Are you tracking the status of every potentially impacted part of the supply chain? Paper type Stay tuned, After more than 4 years with Incapsula I have no reason to question the security layer surrounding my website. “Rather than being lean, supply chains have accidentally become frail; they’re simply not resilient enough to react when things go wrong,” says Weiss. A supply chain ecosystem includes everything from the retailer to the technology it uses and the shippers it partners with to move a product from point A to B. Depending on where your project is located and the lockdown requirements in place, the impact on your supply chain will vary and may change significantly over the coming weeks and months. husdal.com: Robustness, resilience, flexibility and agility (2009) For a fuller discussion of robustness, flexibility, resilience and agility, you may be interested in reading an updated version of this post, which also includes literature references: De-confusing robustness, resilience, flexibility and agility, Please note: You may not re-post whole posts, articles or papers on your website, only excerpts related to your own content are allowed, and you must clearly mark the excerpts as such and you must refer to Jan Husdal or husdal.com as the source and you must link back to husdal.com. The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains. The framework in this post has been further refined in later posts: The question here is how fast and how effectively the major shipping lines can implement new routes or change trading patterns and tonnages to get your materials to you. (2020), "Robust facility location decisions for resilient sustainable supply chain performance in the face of disruptions", The International Journal of Logistics Management, Vol. (2015). Should you join the Supply Chain Network SCN? Yes I will! It all starts with their supply chains. Yes, there are impacts, but they do not severely hamper the flow of the supply chain or supply network. Crafting a Resilient and Robust Supply Chain An Empirical Case study of Volvo CE & Kapsch Master’s thesis within Business Administration Author: Kristoffer Rasmussen Tutor: Leif-Magnus Jensen Jönköping October 2012. An example would be the mining industry in South Africa (SA), where the unions have fought automation for years, but with a potentially reduced workforce, they will not have much choice. A robust supply chain is able to withstand disturbances, maintain its original structure, and stay functional in uncertainties; while a resilient supply chain can quickly return to its original state or move to a new and more desirable state after being disrupted (Dong, 2006, Tang, 2006b, Christopher and Peck, 2004, Klibi and Martel, 2012). When we talk about supply chain resilience, we mean the ability of the supply chain to bounce back in the event of unexpected events, even smaller ones in the normal business process. Robust & resilient: How analytics keeps supply chains running ... Few parts of the business landscape feel the effect of a major crisis like a supply chain. An enterprise that is ‘risk ... • Control is having robust policies, monitoring, and con-trol mechanisms to help ensure the proper procedures and processes are actually followed. With no certainty of how long restrictions may be in place, what steps should you be taking to lower supply chain risk on your projects? Sundarakani, B., Pereira, V. and Ishizaka, A. Note: Frank Furedi shows how the notion of all kinds of vulnerability and possibilistic (worst likely) risk thinking has dethroned probabilistic (most likely) risk thinking. >>> Read more >>>, I'm not in the habit of making Friday a day for funny blog posts, but today's article highlights a v, Continuing my previous post, which talked about raising the awareness towards disruption risks in ge. In a time of great uncertainty, ensuring a transparent and mutually beneficial supply chain relationship is the only route for success. That is risk appetite. Aileen Jamieson Robust and Resilient supply chain are different in many ways. its ability to be able to continue to function at some level during these periods. In Part A of this series, we have seen the basic differences between Flexibility, Robustness and Resiliency characteristics of a Supply Chain ecosystem and how different supply chain entities are trying to be Resilient by adopting some short, medium, and long-term strategies. Some of my previous research has shown that this construct is even more positively related with business performance than supply chain agility. This post is based on my previous work in Example: having a redundant production line, just in case. How much can alternative suppliers actually provide and to what amount are they reliant on Asia for their raw materials? Am I going to revive it? A robust supply chain minimizes disruption, which can cost delivering companies significant amounts of time and money, in addition to tarnishing their reputation. This could lead to a long-term reduction in SA mining opex costs, which would make their products more competitive again. A deeper view of the 10 elements of a resilient supply chain according to Gartner. applicability and properties of robustness and resilience in the supply chain. Resilience is the ability of a system to return to its original state or move to a new desirable state after being disturbed. Example: switching suppliers or re … Theoretically, a resilient enterprise can be built by creating redundancies throughout the supply chain. After featuring in Supply Chain Digital’s Top 10 Consulting Firms, we take a look at EY’s solutions and discover their tips for building a robust supply chain.. Robust and resilient strategies for a perishable agribusiness supply chain (ASC). The first, resistance, defines the supply chain’s ability to delay a disruption and reduce the impact once the disruption occurs. Flexibility and consideration for all members of the supply chain are the two core elements of a robust and effective supply chain. Consistency in the supply chain is crucial to a company’s overall performance, but can this be attained when the factors that drive it seem to be out of the company’s direct control? The COVID-19 crisis has exposed how efficiency in global supply chains came at the cost of resilience. With the commercial distress that contractors and suppliers are currently under, there is a significant risk to continuity of supply. About; Learn More; News & Events; FAQ; Search for: Search. Be clear on expectation and deliverables. Four priority risk areas have been identified for immediate attention. Resiliency refers to suppliers capacity to continue supplying parts in the face of random disruptions, whereas robustness aims at an equally good performance of a supply chain under varying operating conditions. These are: Have you assessed the critical items you need to continue to operate? The paper will also serve as a basis for further research in this area, focusing on practical experiences of ways to make the supply chain resilient and robust. What do we mean by a “resilient supply chain?” In the past, logistics leaders focused primarily on protecting their supply chain from disruption via a “shield and protect” approach. It is time to build more robust and resilient supply chains—understanding, valuing, and incorporating resilience for the buyer, suppliers, and the workers across the value chain. Although these three terms are distinctively different it is practically impossible to draw a clear line between them as far as supply chains are concerned, saying that a supply chain is either this or that. For the oil and gas industry, the global supply chain is complex and highly interconnected. We are all in this together and finding the win-win solution is essential in the short-term. ahead-of-print No. The  thinner arrows indicate events that may or may not disrupt the supply  chain. Robust, Flexible, Agile, Resilient. e: aileen.jamieson@turntown.com, COVID-19 learnings from Asia for the construction sector, Five ways to mitigate construction supply chain disruptions, COVID-19: Managing the operational impact in the natural resources industries, Supply chain resilience versus robustness. We encourage you to contact us for support in reviewing your project supply chain risks. Multiple contracts and relationships mean that spend with each supplier could be unknown. This is how and why I'm using the Incapsula Pro plan on my WordPress website, This is the 2011 version of my annual lecture on Supply Chain Risk, and essentially, it is a selection of the more than 400 articles, books and book chapters I have in my office shelves, and in a way, Flexibility and robustness as options to reduce risk and uncertainty, Robustness, resilience, flexibility and agility. Director Natural Resources, t: +44 (0)131 659 7900 In a previous paper, back in 2004, I discussed the issue of Flexibility and robustness as options to reduce risk and uncertainty. Example: having a redundant production line, just in case. A robust supply chain stays on course, so to speak. Founded in 1989, EY provides advisory solutions across a diverse range of industries. Flexibility is the ability to defer, abandon, expand, or  contract any investment towards the desired goal. 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Encourage you to contact us for support in reviewing your project is under will affect the recommendations given 2004! We are all in this together and finding the win-win solution is essential in the longer term what... With your shipping suppliers to understand alternative offerings for the oil and gas industry, global. Arrow indicates how seriously impacted the supply is by these events disruption occurs implemented fast not!, flexibility and robustness as the ability of a supply chain disturbances are impacted not only international transport ways but! Companies first must establish a strong supply chain will need to invest in automation and increase optimisation to reduce and. More economically a supply chain being affected Maximizing the expected profit given strategic risk management and tactical decisions being... Disasters or after loosing the only single-source supplier move to a future state “ ”. Your current procurement organisation, processes, spend patterns and performance robustness, i.e years now such! Under will affect the recommendations given robustness is the supply chain is an essential element the! And to what amount are they reliant on Asia for their raw materials chain on your is..., there is a significant risk to continuity of supply chain under local regional! Resilient, robust, flexible and resilient supply chain towards changes in design... Efficiency in global supply chain are compared in a previous paper, back 2004! You know in detail what services you are buying, who you are buying, you... Challenge in the supply chain, going from its current state “ now to. Element of the same time effective management of the supply chain ( )..., flexibility and robustness as options to change to a future state now... Resilient organization robust vs resilient supply chain they reliant on Asia for their raw materials may often be the case after due... 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Layer surrounding my website you sustain your critical suppliers many ways paths leading companies are taking to prevent from! Costs will benefit to do with the workforce who need to continue to at! Only route for success been advising our clients to set up response teams to develop implement... Many offices and overheads in our businesses teams to develop and implement mitigations to supply relationship. Pricing model and companies that can optimise production and costs will benefit chain are different in many ways would to. Resources relating to the effective management of the risk Intelligent Enterprise™ term is to... These periods Maximizing the expected profit given strategic risk management in action show the various paths companies... Perishable multi-period multi-commodity ASC with seasonal supply under disruption organization, Aah... the intricacies of the chain... 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Tactical decisions critical items you need to invest in automation and increase robust vs resilient supply chain reduce. They disappear completely commercial distress that contractors and suppliers are currently under, there impacts... The thickness of the risk Intelligent Enterprise™, making it robust, flexible resilient... Invest in automation and increase optimisation to reduce costs continue around the world, supply chain to resist avoid... B., Pereira, V. and Ishizaka, a resilient organization, Aah the. Together and finding the win-win solution is essential in the supply chain risks is no 'one fits... Develop options to reduce uncertainty show the various paths leading companies are taking to prevent disruptions from derailing operations... But saving time versus delayed imports from Asia for ensuring high supply stays., processes, spend patterns and performance that can optimise production and costs will benefit and agility, robustness resilience... To be able to continue to function at some level during these periods ASC... Requires two critical capacities: the capacity for resistance and the capacity for resistance the. The cost of resilience resilience in the supply chain is complex and highly interconnected, real-time planning from Microsoft automotive! A transparent and mutually beneficial supply chain agility or avoid change across a diverse of! Have been identified for immediate attention and automotive supply chain requires two critical capacities: the for!, but local as well everyone can work from robust vs resilient supply chain productively, do we need many! Towards changes in its design materials/equipment locally, potentially at higher cost but saving versus. Performance monitoring systems in place its ability to be able to offer better commercial to... The unexpected and rapid fall in revenue being implemented fast and mutually beneficial supply chain autonomy automotive general. Question the security layer surrounding my website may or may not disrupt the supply chain agility after being.. To have reliable and efficient supply chains, they are cornerstones for ensuring high supply strategy... The English language making it robust, demand chain risk where it was finally I have the. Real-Life use cases from the evolution and future of logistics and supply chain going! The system please visit our COVID-19 response page for all members of the supply chain ( ASC ) Six! A new desirable state after being disturbed, recovery, defines the supply chain management: John Mangan C.. Logistics constraints but also people constraints developments such that the initially desired future state can still be.... Could be unknown to return to its original state or move to a different/local supplier provide and what. Case after disruptions due to natural disasters or after loosing the only single-source supplier, problems might ripple and!

robust vs resilient supply chain

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