supply chain resilience

Even though many papers have varied case studies and themes, the food, automotive, and manufacturing sectors are highlighted as keywords in 31 of them. The significance of the results for supply chain resilience and suggestions for further study are presented in this section. Strengthening the theoretical and empirical underpinnings of these Quadrant 4 themes could enrich discussions on designing adaptive supply networks that minimise risk and enhance performance amid uncertainty. The evolution of research themes, from foundational production modelling to resilience and sustainability, shows a broadening scope in supply chain resilience. Figure 12 (cluster 3) illustrates the fundamental features and roles of “supply chain resilience” that must be preserved for successful functioning. Automation, predictive analytics, collaboration tools, AI, and ML can all be used to raise the efficiency and effectiveness of the supply chain management process, which the relations among keywords emphasise in this statement.

supply chain resilience

The primary purpose of this review is to map and evaluate the diverse body of literature on sustainable and resilient supply chains, to uncover the underlying research streams and identify critical gaps. Supply chain resilience can be improved in many ways, where one of the most effective is to design systems that can adapt quickly to new circumstances by modifying their strategic assets (Christopher & Peck, 2004; Damtew & Goshu, 2024; Jain et al., 2017). The field of supply chain management also recognises the importance of resilience, and substantial knowledge has been generated on the factors contributing to resilience and its impact on performance (Wieland & Durach, 2021). The https://the-business-mag.net/how-to-manage-operational-risks-in-your-supply-chain/ interconnectedness of supply chains and the environment with human culture and the global economy have made the interactions within these ecosystems exceedingly nuanced and complex (Paul et al., 2023; Tarigan et al., 2021). The interplay between the external environment and supply chain networks is fundamental to the operations of businesses and society (Ivanov, 2018). Inevitably, disruptions will become more frequent and complex, so organizations need supply chains that sense change and respond automatically.

Unified frameworks that align economic, environmental, and social goals with adaptive resilience mechanisms are needed. True sustainability in supply chains extends beyond environmental practices to encompass financial viability and social responsibility, domains that parallel resilience but are rarely treated holistically. Longitudinal studies capturing day-to-day operational data would elucidate how these behaviours evolve under recurrent or escalating disruptions. Empirical studies should investigate micro‐level phenomena, especially how managerial behaviour, interdepartmental communication, and incentive structures influence the success or failure of risk mitigation efforts.

Flexibility

Cut costs, streamline procurement, and improve supplier management, fast, no code, all in one experience. By automating routine processes, businesses can respond more quickly to supply chain changes and reduce the risk of disruptions. By connecting these devices to enterprise systems, businesses can react quickly to potential disruptions. Reducing time-to-recover is essential for maintaining a competitive advantage and ensuring that businesses remain resilient in the face of unexpected events.

  • These clusters highlighted that while traditional risk management approaches remained prevalent, emerging methods that integrated advanced optimisation techniques with digital transformation strategies were still in their nascent stages.
  • Furthermore, our review highlighted the potential of emerging methods such as distributionally robust optimisation integrated with reinforcement learning and deep learning.
  • The utilisation of stochastic or possibilistic programming in robust optimisation studies is a prevalent approach.
  • This expansion aims to satisfy local demand in India and build supply chain resilience for global end users.45
  • They can also provide real-time insights that improve decision-making, operational efficiency and supply chain networks.

Literature Review

By giving buyers access to a broad, diversified supplier network, organizations can improve their supply chain flexibility. They’re also investing in tools that improve end-to-end visibility, diversify supplier networks, and adopt automation to react faster when the unexpected happens. Many organizations invest in advanced demand planning and forecasting tools to improve supply chain management, optimize safety stock and respond to market fluctuations. As supply chains restructure, manufacturers are likely to find digitalization critical to help ensure visibility throughout supplier tiers. Manufacturers are building digital twins of the supply chain for essential components, which can assist in identifying alternative suppliers or boosting robustness and agility to reduce dependency. These agreements provide companies access to more favorable tariffs for industrial goods such as machine tools and steam turbines and better access to tax incentives for mineral-based technologies.33

Metrics for supply chain resilience

supply chain resilience

Although some articles propose simulation models (e.g. agent‐based or system dynamics) to study complex adaptive supply chains, relatively few integrate simulation with mathematical optimisation to guide strategic decisions. Industrial manufacturers are using technologies and digital solutions to enhance operational and supply chain resilience and increase visibility across the value chain. He brings more than 25 years of experience focused on helping companies with their internal control, information systems, financial processes, and accounting disciplines, as well as internal auditing, external auditing, and other assurance examinations. While simulation models such as agent‐based or system dynamics provided valuable insights into emergent phenomena (e.g. bullwhip or ripple effects), they often fell short of prescribing optimal policy solutions. We extracted and evaluated the full texts of these 391 articles to confirm their methodological rigor and their explicit focus on supply chain resilience, sustainability, uncertainty, or disruption.

  • Consequently, risks now permeate every level of supply chain management, driven by both the regular occurrence and escalating severity of disruptions (Thomas, 2016; Tran et al., 2018).
  • Among the variables that need to be optimised for supply chain resilience are as follows.
  • These strategies reduce risk while also creating opportunities for greater profitability and growth.
  • Amid the exposure to increased delivery times, differing labor costs, and higher transportation costs, many companies are already shaping their restructuring approaches to take advantage of evolving industrial policy.
  • The researchers in this cluster use stochastic programming, robust optimisation, MCDM, fuzzy logic, and multi-objective optimisation since they explore the effect of resilience strategies and approaches on supply chain management.

The rising complexity of global supply chains has made supply chain uncertainty a ubiquitous http://articlesss.com/supply-chain-management-software-set-to-top-the-sales-charts/ problem for professional managers (Simangunsong et al., 2012). This complexity is further amplified by globalisation, which introduces additional risks, ranging from geopolitical tensions to rapid technological changes, that further heighten uncertainty (Kancs, 2024). In complex supply chain networks, uncertainty permeates every facet of operations (Tsao et al., 2024b). Supply chain uncertainty is a critical challenge that arises from the inherent unpredictability in key supply chain parameters such as demand, lead times, production capacity, and transportation schedules (Belhadi et al., 2024; Tsao et al., 2024a). To familiarise with the concepts potentially encountered in this research, a comprehensive literature review was conducted to understand the significance of critical concepts. This review also aims to explore the evolution of research in this field and reveal how existing themes emerge and interact.

supply chain resilience

These frameworks not only prepare supply chains to absorb shocks but also enable them to adapt and evolve after an event, thereby sustaining competitive advantage. Modern perspectives, however, advocate for integrated frameworks that combine proactive and reactive strategies (Guerra et al., 2024). Forecasting future business conditions remains challenging due to the complex interactions among these variables, resulting in decisions that fail to fully mitigate adverse scenarios (Sazvar et al., 2021). Consequently, risks now permeate every level of supply chain management, driven by both the regular occurrence and escalating severity of disruptions (Thomas, 2016; Tran et al., 2018).

supply chain resilience

Examples of disruption and response

Evidently, the food, automotive, and manufacturing industries were emphasised in the literature analysis since recognising the implications of these industries is crucial. The implications also show the trend that follows in the papers published in the mentioned period. Beyond this core group, the steep drop reveals a long tail of other journals where fewer articles appear, yet they still contribute to the broader research ecosystem. Figure 22 illustrates how a small group of journals, such as the International Journal of Production Research, Computers & Industrial Engineering, and Journal of Cleaner Production, collectively account for the lion’s share of the articles in this field. Supply chain network design is a fundamental strategic concern, while mathematical modelling and uncertainty are indispensable to advanced supply chain decision-making processes. Quadrant 4 contains themes that are widely acknowledged yet lack a tightly knit research community.

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