Putting Supply Chain Resilience Theory into Practise

Abstract

In a time of increasingly frequent disruptions with a global pandemic being the latest crisis, supply chain resilience becomes a priority for most executives. The basic roadmap to supply chain resilience is well established and generally understood by managers, however, implementation and execution remain a challenge. This paper is one of the first to focus on the gap between the theoretical resilience strategies and the actual execution and implementation of those strategies. Interviews with a group of top-level supply chain executives from best-in-class companies were conducted to understand their experiences and perspectives. Seven common implementation challenges such as accentuated efficiency and resilience trade-offs, fragmentation of decision-making, or heterogeneity of supply chains are identified. An independent supply chain risk management function, strong relationships to suppliers and contract manufacturers, a hierarchical supply chain approach, and the use of disruptions as a catalyst for step changes are recommendations to overcome those challenges. The information gathered suggest that a one-size-fits-all approach for the company’s supply chain does not work.

Keywords: Supply Chain, resilience, risk management, disruption, agility, manufacturing, implementation challenges

JEL Classification: L60, M11