Contemporary Issues in Industrial Logistics
Supply Chain Vulnerability
Contents
Page
3. 1.0 Introduction
4. 2.0 Supply Chain Vulnerability
9 3.0 Holistic View of Case Study Supply Chain
10 4.0 Case Study and Vulnerability
4.1 Volatility of Demand
12 4.2 Bulk Ordering and Forecasting
14 4.3 Lack of visibility and control procedures
15 4.4 Globalisation
17. 5.0 Conclusion
18 6.0 Sources of Information
1.0 Introduction
This paper will firstly, briefly look at the concepts, causes and effects of supply chain vulnerability as found in, books, journals and papers, both commercial and academic. A case study will then be used in order to highlight ways in which current thinking affect one particular supply chain.
The case study which will be used to focus discussion is the supply chain which provides a manufacturer’s spare parts to Company X.
This paper will not seek to fully analyse the vulnerabilities of the supply chain, but rather use it as a tool from which to address the opinions and discussion generated by others.
2.0 Supply Chain Vulnerability
“As Supply Chain networks increase in complexity as a result of market volatility, outsourcing, globalisation and single point sourcing, so too has the risk of disruption.
Networks are becoming more vulnerable as supply chains become longer and leaner. Cost-reduction and efficiency are now key business goals and, as a result, networks become increasingly vulnerable to events that previously may have caused only minor
local disruptions.” (Christopher and Rutherford, 2004).
Supply Chain vulnerability is a broad term which describe the ability, or lack of ability, that organisations have in responding to change. This change may be sudden and unexpected, such as terrorist threat or industrial action (disruptive) but equally may be more subtle such as a change...