In a time of great uncertainty, ensuring a transparent and mutually beneficial supply chain relationship is the only route for success. applicability and properties of robustness and resilience in the supply chain. Resilience is the ability of a system to return to its original state or move to a new desirable state after being disturbed. This could lead to a long-term reduction in SA mining opex costs, which would make their products more competitive again. A robust supply chain stays on course, so to speak. Although these three terms are distinctively different it is practically impossible to draw a clear line between them as far as supply chains are concerned, saying that a supply chain is either this or that. Do you know which parts of your supply chain are potentially affected? References Ballou, R. H. (2007). Multiple contracts and relationships mean that spend with each supplier could be unknown. The second, recovery, defines the supply chain’s ability to recover from a disruption. While owners may have a good handle on their tier one and two suppliers, they may not know who their tier three, four or five suppliers are. Example: switching suppliers or re … For the oil and gas industry, the global supply chain is complex and highly interconnected. De-confusing robustness, resilience, flexibility and agility, Robustness and flexibility as options to reduce uncertainty. A supply chain ecosystem includes everything from the retailer to the technology it uses and the shippers it partners with to move a product from point A to B. A best-practice supply chain would in fact encompass all three, making it robust, flexible and resilient at the same time. Please remember that every project will be different to some extent, and the best advice we can give is to make sure the specifics are well understood. I’d say all three supply chain would be needed to ensure a company is ready to combat any impact that may arise in the future. Lean Supply Chain is for longer period for products like usable of vehicle on the other hand Agile Supply Chain is for shorter period like fashion/ retail products. • Maximizing the expected profit given strategic risk management and tactical decisions. Will they survive the unexpected and rapid fall in revenue? Not supply (chain) security, but the security of supp, The twelve future trends that will shape value chains and supply chain management during this decade, So far I have reviewed "international" literature and web sites, and it is only fitting that now it. Example: having a redundant production line, just in case. e: aileen.jamieson@turntown.com, COVID-19 learnings from Asia for the construction sector, Five ways to mitigate construction supply chain disruptions, COVID-19: Managing the operational impact in the natural resources industries, Supply chain resilience versus robustness. The supply chain will need to invest in automation and increase optimisation to reduce costs. Risk Appetite versus Risk Attitude has brought a whole new perspective on risk and risk management to my attention: How much risk do we want to take? However, just as important to consider is the supply chain robustness, i.e. There is no 'one size fits all' answer, and the level of pain your project is under will affect the recommendations given. Are robust reporting structures in place throughout the supply chain e.g sub-contractors report to the main contractor who reports to the project manager who reports to the client? Assess the vulnerability of your production system. As adjectives the difference between robust and resilient is that robust is evincing strength; indicating vigorous health; strong; sinewy; muscular; vigorous; sound; as, a robust body; robust youth; robust health while resilient is able to endure tribulation without cracking. What does it mean? (2020), "Robust facility location decisions for resilient sustainable supply chain performance in the face of disruptions", The International Journal of Logistics Management, Vol. We have been advising our clients to set up response teams to develop and implement mitigations to supply chain risks. Director Natural Resources, t: +44 (0)131 659 7900 In the very near future. When we talk about supply chain resilience, we mean the ability of the supply chain to bounce back in the event of unexpected events, even smaller ones in the normal business process. Next steps to ensure resiliency in your supply chain strategy. Menu. Consider not only international transport ways, but local as well. An example would be the mining industry in South Africa (SA), where the unions have fought automation for years, but with a potentially reduced workforce, they will not have much choice. The thickness of the supply chain arrow indicates how seriously impacted the supply is by these  events. Flexible, Robust, and Resilient Supply Chain Flexible, Robust, and Resilient are the three management characteristics which are used in the context of any ecological, human, or industrial system. Consider also the goods being transported, as initially there will be a massive change in what is imported, so while China is delivering orders of electronics and fashion ordered before the outbreak, there is potentially no market for these now, adding to the congestion. Resilient and robust supply portfolios are compared in a supply chain under local and regional disruption risks. (2015). A flexible supply chain is able to accommodate disruptions by changing its course and even the target, the flow itself (the throughput) is not impacted. A resilient supply chain is an essential element of the Risk Intelligent Enterprise™. Stay tuned, After more than 4 years with Incapsula I have no reason to question the security layer surrounding my website. Now that everyone can work from home productively, do we need so many offices and overheads in our businesses? Designed to Ensure a Resilient and Robust National Supply Chain and Manufacturing Base in the Future. How much risk do we think w, The Global Risk Report 2015 highlights and reflects upon a wide range of cross-cutting challenges that can threaten social stability. These are: Have you assessed the critical items you need to continue to operate? But to have reliable and efficient supply chains, companies first must establish a strong supply chain ecosystem on which to base them. Since then a new term has emerged: resilience, and today I would like to compare these three terms. Do you know in detail what services you are buying, who you are buying them from and under what contract? A deeper view of the 10 elements of a resilient supply chain according to Gartner. husdal.com: Robustness, resilience, flexibility and agility (2009) Are you able to offer better commercial terms to ensure you sustain your critical suppliers. Founded in 1989, EY provides advisory solutions across a diverse range of industries. The  thinner arrows indicate events that may or may not disrupt the supply  chain. Key questions we advise you to address are: With the commercial distress that contractors and suppliers are currently under, there is a significant risk to continuity of supply. Robust and resilient strategies for a perishable agribusiness supply chain (ASC). Robust and Resilient supply chain are different in many ways. Have you engaged with your shipping suppliers to understand alternative offerings? Robust, Flexible, Agile, Resilient. Let me explain the figure below. Are you prepared for new parts of the supply chain being affected? Flexibility and consideration for all members of the supply chain are the two core elements of a robust and effective supply chain. Flexibility is the inherent capability to modify a current direction to accommodate and successfully  adapt to changes in the environment, whereas robustness refers to the ability to endure such changes  without adapting.Resilience, in essence, is the ability to survive these changes despite severe impact. We encourage you to contact us for support in reviewing your project supply chain risks. Are clear and robust communication protocols in place? Company executives are looking to more deeply understand their supply chains, shift from “just-in-time” to a more robust inventory management approach, and increase their supply chain … Paper type Crafting a Resilient and Robust Supply Chain An Empirical Case study of Volvo CE & Kapsch Master’s thesis within Business Administration Author: Kristoffer Rasmussen Tutor: Leif-Magnus Jensen Jönköping October 2012. The thick line symbolizes the supply chain, going from its current state  “now” to a future state “future”. Tips based on real-life use cases from the automotive and general manufacturing industries. Are you tracking the status of every potentially impacted part of the supply chain? Our procurement health check provides a complete view of your current procurement organisation, processes, spend patterns and performance. The paper will also serve as a basis for further research in this area, focusing on practical experiences of ways to make the supply chain resilient and robust. Examples of supply chain risk management in action show the various paths leading companies are taking to prevent disruptions from derailing their operations. Aileen Jamieson The strategic design of a robust supply chain has as goal the configuration of the supply chain structure so that the performance of the supply chain remains of a consistently high quality for all possible future scenarios. A resilient supply chain is impacted, but it is able to come back to where it was. Depending on where your project is located and the lockdown requirements in place, the impact on your supply chain will vary and may change significantly over the coming weeks and months. When we talk about supply chain resilience, we mean the ability of the supply chain to bounce back in the event of unexpected events, even smaller ones in the normal business process. However, new ways of working are being implemented fast. What does it mean? A robust supply chain is able to withstand disturbances, maintain its original structure, and stay functional in uncertainties; while a resilient supply chain can quickly return to its original state or move to a new and more desirable state after being disrupted (Dong, 2006, Tang, 2006b, Christopher and Peck, 2004, Klibi and Martel, 2012). Master’s(Thesis(in(Business(Administration Please visit our COVID-19 response page for all of our resources relating to the impact of COVID-19 on the construction sector. Example: switching suppliers or re-designing a product. Will government support packages be enough to keep your supply chain afloat? Can you develop options to change to a different/local supplier? This may often be the case after disruptions due to natural disasters or after loosing the only single-source supplier. Now that China is returning to business, will orders arrive soon? Yes, there are impacts, but they do not severely hamper the flow of the supply chain or supply network. husdal.com: Flexibility and Robustness (2004) Resiliency refers to suppliers capacity to continue supplying parts in the face of random disruptions, whereas robustness aims at an equally good performance of a supply chain under varying operating conditions. Flexibility and robustness are two sides of the same coin, yet at the same time two distinctively different  animals. Pereira, V. and Ishizaka, a resilient supply chain stays on course so. Contract any investment towards the desired goal will benefit for more than years... Chain strategy state “ future ” us for support in reviewing your project is under will affect the given... Our procurement health check provides a complete view of your supply chain s... Their raw materials mitigations to supply chain to resist or avoid change two critical capacities: the capacity for and. 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