Online from: 1988
|Title:||The severity of supply chain disruptions: design characteristics and mitigation capabilities|
|Author(s):||Craighead C W, Blackhurst J, Rungtusanatham M J, Handfield R B|
|Journal:||Decision Sciences, Feb 2007, Volume: 38 Issue: 1 pp.131-156 (26 pages)|
|Keywords:||Operations Management, Organizational Design, Problem Solving, Response Flexibility, Risk Management, Supplier Evaluation, Suppliers, Supply-chain Management|
|Article type:||Research paper|
|Reference:||36AP013 (Permanent URL)|
Design/methodology/approach - Draws on the SC literature to table exemplary studies 2000-2006 concerning SC disruptions, consequences, and management. Views SCs as networks of different organic entities (nodes) connecting inward materials flows (arcs) and outwards goods flows (arcs) to customers. Investigates SC disruptions by undertaking (1) study of a US automobile manufacturer's global SC, (2) a semi-structured telephone interview with nine firms (different sectors, different SC positions), and (3) facilitation of three focus groups addressing arising issues and describing one SC disruption they handled well and one poorly.
Findings - Establishes, inter alia, that SC density (inversely related to geographical spacing of SC nodes), SC complexity (related to node forward, backward and in-tier flow numbers), and node criticality (node risk/value importance) all relate positively to SC disruption severity. Notes firms were more concerned with disruptions affecting a cluster of suppliers than just one. Develops related corollaries. Discusses mitigation by recovery capability (e.g. for rerouting), and warning capability (pending/actual disruption alert given). Synthesizes six propositions to guide firms in evaluating SC vulnerability and responding to discovered risks.
Research limitations/implications - Seeks further research into the propositions, network characteristics, and recovery options.
Practical implications - Opines the results question perceived wisdom, e.g. pursuing supply base reduction increases node criticality.
Originality/value - Establishes insights into manufacturers' views of supply chain (SC) disruption in relation to SC network characteristics (density, complexity, node criticality). States effects are mitigated by recovery and warning capabilities.