Model to assess supply chain resilience

Abstract

The uncertainty in the current business environment is driven by events such as economic crises, climate change, global terrorism, shortage of resources and so on. This causes traditional supply chain operations models to become obsolete and not able to ensure the sustainability and competitiveness of the organizations. In this context, resilience is defined as the ability of a company/ community/ environment/ people to recover after it has been exposed to an important disturbing event, for instance, a natural disaster as a hurricane hitting the main suppliers, thus creating lack of raw materials in production lines. This article tackles how the assessment of the supply chain resilience, considering this capacity, enables one to be better prepared for an unstable risky environment and the post disaster consequences. We propose a model based on three categories of indicators; the first one is related to achieving an organizational resilience (to assess by results of responsiveness, flexibility and effectiveness), the second one is related to attaining business resilience (to assess by cash-to-cash, days of inventory, days of receivables and days of payables), and the third one is related to having a labour resilience (to assess by labour capabilities to overcome vulnerable living conditions). Two Peruvian supply chain companies (which belong to the food and pharmaceutical sectors) have been studied by using the model; the main results allow concluding that they have a low resilience level, because of their current three-category indicator results.

Supply Chain Operations Management in Pandemics: A State-of-the-Art Review Inspired by COVID-19

“…Assessing supply chain resilience [113] Supply chain management A model based on three categories of indicators was proposed to assess resilience, such as an organizational resilience in terms of responsiveness, flexibility, and effectiveness, attaining business resilience (to assess by cash-to-cash, days of inventory, days of receivables, and days of payables), and labor resilience, based on capabilities for overcoming vulnerable living conditions.…”

A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain

“…This information must include (among others) density, complexity and criticality of the nodes in the face of disruptive events. 28 12.07% [25,26,[29][30][31][32][33]46,114,125,130,157,160,163,165,168,169,190,202,203,205,[212][213][214][215][216][217] Trust…”

Coping with earthquakes and COVID-19: A perspective of customer relationship management

“…Distribution & logistics reengineering Vargas and González (2016) define distribution and logistics resilience as the capacity to organize and optimize response and quickly resume nominal operations. Thus, distribution and logistics re-engineering encompasses the capacity to adapt to new customer circumstances by ensuring that customers receive products and services within an acceptable period.…”