Title: Robust Supply Chain Operation Modes Coping with Supply Disruption Risks——Enlightenments to Chinese Enterprises
Abstract: In recent years,the external environment of supply chains becomes more complicated.The occurrence of emergencies such as natural disasters,political events,public health or social security incidents shows more frequent and destructive,and makes supply chains weaker.Meanwhile,on the one hand,the risks of supply disruption have also increased due to the globalization of the supplier base used by buyers.On the other hand,nowadays,the integration of supply chains,the expansion of supply chain networks,and the wide use of lean production and JIT,increase the dependence between supply chain network members,and make the supply chain structure more complex and fragile.It is not only large disasters which can bring disruption to supply chains,but some operation faults of suppliers can also get the supply chain into disruption.These factors include an organization's lack of familiarity with the supplier's processes,reduced control across organizational and regional boundaries,and small distance which contributes to an increasing susceptibility to production disruption that occurs at suppliers' manufacturing facility. In this context,the traditional supply chain can no longer adapt to the new environment and change.However,new kinds of supply chain operational modes which are robust to emergencies and other supply chain risks begins to attach great importance.The objectives of robust supply chain's design and management include not only the maximization of profits,but also the safety,stability and continuity of supply.Compared with the traditional supply chains,the concept of robust supply chain greatly improves the importance of supply security.It takes into account the profit target,service level objectives and requirement for survival of enterprises comprehensively.It can reduce the impact of external emergencies and internal operation uncertainty to the minimum,and gives the enterprises long-term survival ability in the most changeful environment of political,economic and natural conditions. In the context of increasingly fragile supply of raw materials or parts needed for production,the research on robust supply chain is of great theoretical and application value for enterprises to cope with supply disruption risks and to build supply chain modes of great safety.This paper begins by describing the evolution of traditional supply chain to robust supply chain,then puts forward the theoretical basis of the construction of robust supply chain operational modes,analyzes the operational mechanism of robust supply chain,and designs a number of robust modes considering the profits,safety,stability and continuity of supply chain.These modes include multi-source supply mode,strategic inventory mode,option mode,the backup supplier mode,flexible supply chain mode and the combination of multiple modes.After that,this paper studies the change of performance which robust operational modes bring,analyzes the key points of the application of robust modes,and finally puts forward the significance and implemental suggestions to the supply chain design and management of Chinese enterprises. The construction and implement of robust operational modes take certain costs.When supply disruption does not occur,the profit is lower than traditional modes,but once disruption occurs,it can give the supply chains a strong and reliable umbrella.Robust supply chain operational modes are better than traditional modes in supply safety,supply continuity and supply stability,and make the enterprises obtain sustainable competition ability and long-term viability. At present,Chinese enterprises meet with unprecedented opportunity of development,while also face the huge challenges of supply disruption risks.Their key idea of supply chain's design and management should turn from the simple pursuit of short-term profits to the pursuit of long-term goals of enterprises' safety and long-term profits.They should pay attention to the cooperation of multiple robust modes,strengthen the information sharing of supply chains,attach importance to weak ties relationship management,enchance the diversification construction of supply chain cultures,and build really efficient robust supply chains.
Publication Year: 2013
Publication Date: 2013-01-01
Language: en
Type: article
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