If people talk about disruptions and network effects within the supply chain, the associations are most often negative.
The picture of an automotive/just-in-time supply chain comes to mind, where a small screw from a distant supplier did not get delivered in time and all production processes within the whole network suddenly come to an involuntary halt.
But on the other hand there are companies profiting from these smaller and larger disruptions: competition.
Submitted by Daniel Dumke on Mon, 2010-11-08 15:38
Paper
Global Manufacturing Outlook
Year:
2010
A current report by KPMG shows that international manufacturers are increasingly considering effects of supplier selection on cost and potential risks. Nearly 200 companies participated globally in the survey. The full report can be downloaded here at KPMG, I just summarized the major findings.
One of the most published supply risk researchers is George A. Zsidisin. In his 2003 article he describes the characteristics of inbound supply that affect the perception of risk.
In his 2009 paper Brian Tomlin analyzes strategies to mitigate disruption risks in a three echelon supply chain.
Setting
Focus in his research is a single company, with its suppliers and customers. The objective is to maximize expected utility, while demand and supply are uncertain. There are two products available which can be used as substitutes. The time horizon for the decision maker is one season where the products can be sold.
