Reducing the Risk of Supply Chain Disruptions Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The early years of the 21st century have already been remarkable for important supply chain disruptions that have emphasized vulnerabilities for individual companies and for entire businesses. Besides the loss of life, the Japanese tsunami in 2011 left the world auto industry reeling for a number of months. Thailand's 2011 floods impacted the supply chains of computer manufacturing companies dependent on hard disks and Japanese auto companies with plants in Thailand.The authors note that businesses want to safeguard their supply chains from serious and costly disruptions, but the most obvious alternatives -increasing inventory, adding capacity at different places and having multiple providers -sabotage supply chain price efficacy. Surveys have shown that while supervisors recognize the impact of supply chain disruptions, very little have been accomplished to subvert such incidents or appease their impacts. The writers claim that supply chain efficiency, which is directed at enhancing fiscal performance, is different from supply chain resilience, in which the target is risk reduction.

Although both need dealing with risks, continual dangers (like demand changes) require companies to focus on efficiency in improving the manner they fit supply and demand, while tumultuous risks require firms to build resilience regardless of added cost. Recently, supervisors are becoming much better at building operational reserves such as production capacity and stock and managing international supply chains through advanced planning and performance. But, the writers argue that reliance on sole-source suppliers, parts that are common and inventories that are focused has left hazards that are exposed companies. Although sourcing from or outsourcing to distant low-cost places and eliminating redundant providers and excessive capacity could make supply chains more cost efficient, in addition they make supply chains more vulnerable. How should managers reduce the exposure of their supply chain to disruptive hazards without giving up hard-earned gains from improved supply chain efficiency in performance? The authors further suggest that companies design business continuity plans to help them respond to danger episodes that are tumultuous and they overestimate the probability of dislocation.

Reducing the Risk of Supply Chain Disruptions Case Study Solution

PUBLICATION DATE: April 01, 2014 PRODUCT #: SMR484-HCB-ENG

This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS