Supply chain resilience
Supply chain resilience is the capacity of a supply network to withstand disruptions, adapt, and restore operations while limiting losses.
Supply chain risk management: The process of identifying, assessing, and addressing risks that could disrupt supply chain operations. It turns resilience goals into ongoing practices for anticipating and managing disruption.
Supply chain: A network of organizations, people, activities, information, and resources involved in producing and delivering a product or service. Resilience is a property of this interconnected network, not just one firm.
Just-in-time manufacturing: A production approach that replenishes materials close to when they are needed, minimizing inventory. Its low buffers can make production vulnerable when replenishment is interrupted.
Supply chain robustness: The ability of a supply chain to maintain performance despite disturbances, often without changing its structure or operation. Robustness emphasizes resisting disruption; resilience also includes adaptation and recovery.
Bullwhip effect: The amplification of demand variability as orders move upstream through a supply chain. Disruption and poor coordination can magnify fluctuations beyond the original change in demand.
Supply chain redundancy: The use of backup suppliers, routes, capacity, or inventory to maintain operations when a primary option fails. Redundant options let flows continue when a supplier or route is disrupted.
Supplier diversification: The practice of sourcing a product, service, or input from multiple suppliers rather than relying on one. Multiple sources reduce dependence on a single supplier's ability to deliver.
Nearshoring: The relocation of business activities to countries geographically close to the market they serve. Shorter or more controllable supply routes can reduce some exposure to distant disruptions.
Supply chain agility: The ability of a supply chain to respond quickly to changes in demand, supply, or operating conditions. Agility stresses speed of response, while resilience also concerns withstanding and recovering from shocks.
Economic resilience: The capacity of an economy to withstand, adapt to, and recover from shocks. Supply networks contribute to the ability of regions and economies to recover from disruption.