New operating environment bought awareness to the supply chain management after the terrorist attacks on the World Trade Center and the Pentagon on September 11, 2001. These events exposed the pre-existing and unseen risk of disruption to supply networks from terrorist attacks. The risk was there all along but the attacks made it real and foremost in our minds.
Additionally, these events began to expose the more significant interdependence that exists between all firms in the supply network. The interdependence also includes reliance on those U.S. Government agencies involved with transportation infrastructure and inbound mterial flows. Given these interdependencies, if one firm fails in the supply network, the entire network
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Specifically, firms will need to pioneer new relationships with U.S. Government agencies that now share responsibility for making the supply network secure and resilient. Additionally, firms will need to develop deeper relationships with suppliers and customers throughout their supply networks to co-create a more secure and resilient network. Internally, the largest organizational challenge may be in establishing at the individual level a solid understanding of the interdependence of the systems, and the educational and training systems needed for tough network designs and planned responses to disruptions.
Studying the practices of the progressive firms helped surface several characteristics that were common among the group and which are worth examining. They nearly all of the progressive firms (all but one firm) had previously experienced the impact of disruptions in their supply networks, and in response they built resilience and security into the current supply network. Also these firms revisited their existing supply network design, and actively redesigned their supply networks for resilience through a combination of flexibility and redundancy initiatives. Often, the firms elected to apply these in a ‘layered’ fashion to create a system comprised of layers of security and resilience. Then in developing plans to respond, the progressive firms often focused on ‘failure modes’ and those limited number of ways that operations can be affected by the
Changes within the supply chain can disrupt the normal flow of goods and services because each change hasn’t been fully scrutinized. A firm can plan and speculate that a change with have a certain effect on the supply chain, but until those processes have been measured it is impossible to know the true cause and effect of any disruption.
Supply Chain Opportunity in an Uncertain Economic Recovery, by Eric G. Olson, discusses the advantages the supply chain has in a struggling economic recovery, when most other companies are dealing with uncertainty. The authors’ intention contained in this article is to discuss opportunities that businesses have to grow their operations despite coming out of a severe recession. The author identifies to take advantage of these opportunity, companies must be willing to be more flexible and that scalability is much easier to implement coming out of a severe recession. The author provides a design, methodology, and approach to implement these changes, highlighting the scalability and flexibility benefits, mitigation if multiple risks, identification supply chain opportunities.
Today’s global supply chain has been shaped by the past decades of focus and strategies based on achieving the lowest operational costs coupled with a push towards market expansion and supplier outsourcing. The expansion of global supply chains combined with the increasing number of joined connections to external business partners has significantly raised the possibility for supply chain disruptions (Poirier, Quinn, & Swink, 2010). In today’s global business environment, the importance of risk management continues to grow daily.
Enrich partnership among Protective Security Advisors, all levels of government, and the private sector to protect critical infrastructure
Rapid recovery from tremulous disruption can be achieved when the elements of resilience are present and utilise and the organisation can manage to bounce back to a stable operational state similar to the state before the initial change.
Beside, supply chain depends not only on one mode of transportation rather involves intermodal transportation and “an interconnected web of transportation infrastructure” (Obama, 2012). For instance, air transportation systems are vulnerable to accidents or mishaps, bad weather conditions and at most terrorist attacks. Imagine a scenario where terrorist organization target and shot down full loaded passenger airplane with surface-to-air missile (SAM), or a situation where they hijack a plane and crash it on crowded city and arena (Stewart, & Mueller, 2013, P.615). These types of situation will cause human loss, property damages; create fear on the travelling public and resulted in huge economic
A Customized Textbook, Supply Chain Management SCHM2301, ISBN9781308037400 Copies are on reserve in the library
System processes which allow for the ability of disparate organizations to work together and share intelligence provide synergy and bring a wealth of diversified experiences. The FBI Joint Terrorism Task Force (JTTF) serves as such an example. The JTTF is comprised of law enforcement officers, analysts and specialist from local, state and federal agencies nationwide collectively working together and sharing intelligence for the purpose of disrupting and dismantling terrorist organizations and lone wolf attacks (FBI, n.d.) Mutual cooperative efforts not only benefit the organizations involved but serves a much broader purpose towards the health and safety of the community. I would submit that in the case of the Aviation Transportation System, inter-agency cooperation is not limited to just public safety but in fact covers all facets of the enterprise. Such cooperation will only make the enterprise better and more effective. The Plan's successfully marshaling of assets provides a uniqueness which cannot be mastered if handled separately. I think the overarching plan which includes the bundling of subcomponent plans makes it unique because it delivers a compressive policy which supports a vast infrastructure. Not only must the plan utilize security assets for the protection of life, property and infrastructure but must also incorporate measures for daily operations and to maintain quality control. For a large entity to work, its components must fit together and work in harmony. That's tough in a bureaucracy, but problems can be mitigated by understanding objectives and instituting carefully formulated policy. This allow its members to understand roles, responsibilities and
Cisco not only failed to forecast a market downturn and also reportedly its problems were largely caused by inherent defects in the company systems. Below are some of the reasons why Cisco landed in financial trouble in early 2001. There were several factors that play a part for Cisco’s crisis in early 2001. But the main culprit was the misalignment of Cisco’s interest with this of its contract manufacturers which leaded to communication breakdown in the overall supply chain process. Stanley et al., (p.10, 2007) mentioned that “a supply chain is made up of a series of linked company-level value chains where communication up and down the supply chain can help build processes that enable the entire chain to make and deliver winning products and services”.
Russell, R. S., & Taylor III, B. W. (2014). Operations and Supply Chain Management, 8th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.
(Handfield, 2007) Code C should cultivate supply chain strategies that plainly deliberate two parameters that “intensify” the negative influence of interruptions on customer and brand performance: globalization and product/process complexity. Second, Code C should plan strategies with countermeasures that diminish the impact of these things, that is: better visibility to strategic supply chain nodes that can rapidly identify disruptions. They should also have well-positioned resources that allow rapid short-range retrieval plans. They need to have in place long-range cooperative methods to remove disruptions in the future. Research also recommends that companies with a great exposure to global supply chain risk invest more in improved inventory and capacity visibility
Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.
Contingency planners are now asserting that contingency planning is a value-added component that can be a competitive advantage in the marketplace as well a means of helping organizations save money. Processes that are deeply analyzed in terms of continuity will usually be more secure, and new ways of working may emerge to help streamline operations. Contingency planning can be useful when forging alliances with external organizations or during acquisition phases. Contingency planning should be part of an organization’s quality cycle as well. “Business continuity and disaster recovery have gained somewhat in the eyes of top corporate management since the start of the 1990s. As the industry has slowly evolved from what could almost have been called a ‘black art’ to something starting to resemble a disciplined science, basic business principles have begun to become increasingly relevant” (Rothstein, 2003, p. 1).
Define the situation (case summary) Define the major issues, conflicts, and the network . Describe the options (alternatives) for solving these issues. Several internal and external influences serve as contributing factors in the reconsideration of the company’s current system. Changes in customer demands, domestic and global competition, and a unique decentralized management system is now forcing the Westminster Company to reevaluate their traditional supply chain practices. (Bowersox & M.B., 2014) Westminster’s domestic operations consist of three separate companies that sell and distribute products to several of the same customers. (Bowersox & M.B., 2014) At first glance consolidation of the systems can significantly improve