The views expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the Air Force, the Department of Defense, or the U.S. Government. In a world of turbulent change, resilience is a key competency since even the most carefully designed supply chain is susceptible to unforeseen events. This article presents a new Supply Chain Resilience Framework to help businesses deal with change. The conceptual framework is based on extant literature and refined through a focus group methodology. Our findings suggest that supply chain resilience can be assessed in terms of two dimensions: vulnerabilities and capabilities. The Zone of Resilience is defined as the desired balance between vulnerabilities and capabilities, where it is proposed that firms will be the most profitable in the long term. We identified seven vulnerability factors composed of 40 specific attributes and 14 capability factors from 71 attributes that facilitate the measurement of resilience. The article concludes with managerial implications and recommendations for future research.

I n today's tightly connected global economy, traditional management practices that rely on "steady-state" conditions are challenged by chaotic external pressures and turbulent change. Just in the last few years, the world has experienced a string of catastrophic events, including a global economic meltdown, a volcanic eruption in Iceland, an oil spill in the Gulf of Mexico, a disastrous tsunami and power blackout in Japan, and political upheavals in Africa and the Middle East. Managing the risk of an uncertain future is a challenge that requires resilience-the ability to survive, adapt, and grow in the face of turbulent change. This research develops a measurement tool titled the Supply Chain Resilience Assessment and Management (SCRAM TM ). Data gathered from seven global manufacturing and service firms are used to validate SCRAM TM , using qualitative methodology with 1,369 empirical items from focus groups reviewing 14 recent disruptions. Critical linkages are uncovered between the inherent vulnerability factors and controllable capability factors. Through mixed-method triangulation, this research identified 311 specific linkages that can be used to guide a resilience improvement process. Pilot testing suggests a correlation between increased resilience and improved supply chain performance.

Pursuit of sustainable development requires a systems approach to the design of industrial product and service systems. Although many business enterprises have adopted sustainability goals, the actual development of sustainable systems remains challenging because of the broad range of economic, environmental and social factors that need to be considered across the system life cycle. Traditional systems engineering practices try to anticipate and resist disruptions but may be vulnerable to unforeseen factors. An alternative is to design systems with inherent "resilience" bytaking advantage of fundamental properties such as diversity, efficiency, adaptability, and cohesion. Previous work on sustainable design has focused largely upon ecological efficiency improvements. For example, companies have found that reducing material and energy intensity and converting wastes into valuable secondary products creates value for shareholders as well as for society at large. To encourage broader systems thinking, a design protocol is presented that involves the following steps: identifying system function and boundaries, establishing requirements, selecting appropriate technologies, developing a system design, evaluating anticipated performance, and devising a practical means for system deployment. The approach encourages explicit consideration of resilience in both engineered systems and the larger systems in which they are embedded.

We opened our 2010 paper in the Journal of Business Logistics with a 6th century quote by Heraclitus – “The only constant is change.” This immutable law certainly holds in today's volatile business world, especially for supply chain management, and has been the driving factor behind the interest in resilience. Since the seminal works of the mid‐to‐late 1990s and early 2000s, the supply chain discipline has progressed toward a common understanding of resilience. But we're not there yet. This paper reflects on the impact of our 2010 paper, and envisions future opportunities for advances in resilience that will improve both day‐to‐day business continuity and long‐term sustainability. We are honored to be selected for this 40th Anniversary Issue of the Journal of Business Logistics, and proud that our paper has been recognized as the most cited of the decade.

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