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Supply network
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<h2 id="resilience-in-supply-networks">Resilience in supply networks</h2> <p>A resilient supply network effectively aligns its strategy, operations, management systems, <a href="/facts/Governance/I4tEBlhT">governance</a> structure, and decision-support capabilities so that it can uncover and adjust to continually changing risks, endure disruptions to its primary earnings drivers, and create advantages over less adaptive competitors.<a class="footnote-ref" id="fnref:3" href="#fn:3"><sup>3</sup></a><a class="footnote-ref" id="fnref:4" href="#fn:4"><sup>4</sup></a> Moreover, it has the capability to respond rapidly to unforeseen changes, even chaotic disruption. The resilience of a supply network is the ability to bounce back – and, in fact, to bounce forward with speed, determination and precision. In recent studies, resilience is regarded as the next phase in the evolution of traditional, place-centric enterprise structures to highly virtualized, customer-centric structures that enable people to work anytime, anywhere.<a class="footnote-ref" id="fnref:5" href="#fn:5"><sup>5</sup></a><a class="footnote-ref" id="fnref:6" href="#fn:6"><sup>6</sup></a> </p><p>Resilient supply networks should align their strategies and operations to adapt to risk that affects network capacities. There are 4 levels of supply chain resilience: </p> <ol><li>reactive supply chain management.</li> <li>internal supply chain integration with planned buffers.</li> <li>collaboration across extended supply chain networks.</li> <li>a dynamic supply chain adaptation and flexibility.<a class="footnote-ref" id="fnref:7" href="#fn:7"><sup>7</sup></a></li></ol> <h3>Strategic resilience</h3> <p>From the strategic resilient viewpoint, a supply network must dynamically reinvent business models and strategies as circumstances change. It is not about responding to a one-time crisis, or just having a flexible supply chain. It is about continuously anticipating and adjusting to discontinuities that can permanently impair the value preposition of a core business with focus on delivering <a href="/facts/Customer_satisfaction/upP4jHb9">customer satisfaction</a>. Strategic resilience requires continuous innovation with respect to product structures, processes, but also corporate behaviour. Renewal can be regarded as the natural consequence of a supply network’s innate strategic resilience.<a class="footnote-ref" id="fnref:8" href="#fn:8"><sup>8</sup></a> </p> <h3>Operational resilience</h3> <p>In terms of operational resilience, the supply networks must respond to the ups and downs of the <a href="/facts/Business_cycle/etH0t44s">business cycle</a> or to quickly rebalance product-service mix, processes, and supply chain, by bolstering enterprises agility, flexibility and robustness in the face of changing environments.<a class="footnote-ref" id="fnref:9" href="#fn:9"><sup>9</sup></a><a class="footnote-ref" id="fnref:10" href="#fn:10"><sup>10</sup></a><a class="footnote-ref" id="fnref:11" href="#fn:11"><sup>11</sup></a> </p> <h2 id="research">Research</h2> <p>There are two distinct types of supply network research:<a class="footnote-ref" id="fnref:12" href="#fn:12"><sup>12</sup></a> </p> <ul><li><a href="/facts/Descriptive_research/hXzGGxdp">descriptive studies</a> of industrial supply networks</li> <li>prescriptive research into supply chain management focussing on strategic and operational management questions.</li></ul> <p>Early supply network descriptive research looked at the <a href="/facts/Automotive_industry/fGFKUIlA">automotive industry</a>, comparing the Japanese <a href="/facts/Keiretsu/d0XJhu6K">Keiretsu</a> with western manufacturing networks.<a class="footnote-ref" id="fnref:13" href="#fn:13"><sup>13</sup></a> Recent research also considers how buyers address social responsibility in supply networks, finding that audit strategies can be optimized by prioritizing the "least valuable unaudited supplier" based on its contribution to overall production value and network structure.<a class="footnote-ref" id="fnref:14" href="#fn:14"><sup>14</sup></a> </p> <h2 id="see-also">See also</h2> <ul><li><a href="/facts/Document_automation/uFuGEfrk">Document automation#In supply chain management</a></li> <li><a href="/facts/Supply_network_operations/BGQ5xEFp">Supply network operations</a></li> <li><a href="/facts/Value_network/UEpjfuhn">Value network</a></li> <li><a href="/facts/Value_network_analysis/TfjgVoV1">Value network analysis</a></li> <li><a href="/facts/Logistics/0Hr2w55W">Logistics</a></li></ul> <h2 id="external-links">External links</h2> <ul><li><a href="/facts/GS1_US/J0K8KdP6">GS1 US</a>, <a href="http://www.gs1us.org/Glossary/tabid/58/Default.aspx">Glossary of supply chain standards</a> <a href="https://web.archive.org/web/20100521072829/http://www.gs1us.org/Glossary/tabid/58/Default.aspx">Archived</a> 2010-05-21 at the <a href="/facts/Wayback_Machine/nmQ3a6JC">Wayback Machine</a></li></ul> <h2 id="references">References</h2> <ol> <li id="fn:1"><p>Mills, J., Schmitz, J. and Frizelle, G., A strategic review of "supply networks", International Journal of Operations and Production Management, Vol 24, No. 10, 2004, pp. 1014-1015, accessed on 3 July 2024 <a href="https://www.emerald.com/insight/content/doi/10.1108/01443570410558058/full/html" target="_blank">https://www.emerald.com/insight/content/doi/10.1108/01443570410558058/full/html</a> <a href="#fnref:1" class="footnote-back-ref">↩</a></p></li> <li id="fn:2"><p>Saunders, M. (1997), Strategic Purchasing and Supply Chain Management, 2nd edition, London: Pitman, p. 45 <a href="#fnref:2" class="footnote-back-ref">↩</a></p></li> <li id="fn:3"><p>Anand, G. and Ward, P., 2004. Fit, Flexibility and Performance in Manufacturing: Coping with Dynamic Environments. Production and Operations Management Journal, 13 (4), pp. 369-385 <a href="#fnref:3" class="footnote-back-ref">↩</a></p></li> <li id="fn:4"><p>Starr, R., Newfrock, J. and Delurey, M., 2002. Enterprise Resilience: Managing Risk in the Networked Economy. Strategy+business, 30 <a href="#fnref:4" class="footnote-back-ref">↩</a></p></li> <li id="fn:5"><p>Bell, M.A., 2002. The Five Principles of Organizational Resilience. Gartner, Inc. <a href="#fnref:5" class="footnote-back-ref">↩</a></p></li> <li id="fn:6"><p>Christopher, M. and Peck, H., 2004. Building the Resilient Supply Chain, International Journal of Logistics Management, 15(2) <a href="https://www.emerald.com/insight/content/doi/10.1108/09574090410700275/full/html" target="_blank">https://www.emerald.com/insight/content/doi/10.1108/09574090410700275/full/html</a> <a href="#fnref:6" class="footnote-back-ref">↩</a></p></li> <li id="fn:7"><p>Dahlberg, Greg (27 August 2013). "The Four Levels of Supply Chain Maturity". Archived from the original on 24 March 2014. Retrieved 27 August 2013. <a href="https://web.archive.org/web/20140324191331/http://www.gtnexus.com/blog/cloud-supply-chain/the-four-levels-of-supply-chain-maturity/" target="_blank">https://web.archive.org/web/20140324191331/http://www.gtnexus.com/blog/cloud-supply-chain/the-four-levels-of-supply-chain-maturity/</a> <a href="#fnref:7" class="footnote-back-ref">↩</a></p></li> <li id="fn:8"><p>Hamel, G. and Välikangas, L., 2003. The Quest for Resilience. Harvard Business Review. <a href="#fnref:8" class="footnote-back-ref">↩</a></p></li> <li id="fn:9"><p>Mallak, L., 1998. Putting Organizational Resilience to Work. Industrial Management, November-December. <a href="#fnref:9" class="footnote-back-ref">↩</a></p></li> <li id="fn:10"><p>Robb, D., 2000. Building Resilient Organizations. OD Practitioner, vol. 32(3). <a href="#fnref:10" class="footnote-back-ref">↩</a></p></li> <li id="fn:11"><p>Coutou, D.L., 2002. How Resilience Works. Harvard Business Review, May. <a href="#fnref:11" class="footnote-back-ref">↩</a></p></li> <li id="fn:12"><p>Lamming, R. et al., "An initial classification of supply networks", International Journal of Operations and Production Management, Vol 20, No. 6, pp 675-691 <a href="#fnref:12" class="footnote-back-ref">↩</a></p></li> <li id="fn:13"><p>Mills, J., Schmitz, J. and Frizelle, G., A strategic review of "supply networks", International Journal of Operations and Production Management, Vol 24, No. 10, 2004, pp. 1014-1015, accessed on 3 July 2024 <a href="https://www.emerald.com/insight/content/doi/10.1108/01443570410558058/full/html" target="_blank">https://www.emerald.com/insight/content/doi/10.1108/01443570410558058/full/html</a> <a href="#fnref:13" class="footnote-back-ref">↩</a></p></li> <li id="fn:14"><p>Zhang, Han; Aydin, Goker; Parker, Rodney (2022). "Social Responsibility Auditing in Supply Chain Networks". Management Science. 68 (2): 1058–1077. doi:10.1287/mnsc.2020.3950. <a href="/wiki/Doi_(identifier)" target="_blank">/wiki/Doi_(identifier)</a> <a href="#fnref:14" class="footnote-back-ref">↩</a></p></li> </ol>