Putting Supply Chain Resilience Theory into Practise
Andy Tsay, Professor of Information Systems & Analytics
Cohen, M. A., S. Cui, S. Doetsch, R. Ernst, A. Huchzermeier, P. Kouvelis, H. L. Lee, H. Matsuo, A. A. Tsay. 2023. "Putting Supply Chain Resilience Theory into Practise," Management and Business Review 2(3): 7–17.
Abstract
In a time of increasingly frequent disruptions with a global pandemic being the latest crisis, supply chain resilience becomes a priority for most executives. The basic roadmap to supply chain resilience is well established and generally understood by managers, however, implementation and execution remain a challenge. This paper is one of the first to focus on the gap between the theoretical resilience strategies and the actual execution and implementation of those strategies. Interviews with a group of top-level supply chain executives from best-in-class companies were conducted to understand their experiences and perspectives. Seven common implementation challenges such as accentuated efficiency and resilience trade-offs, fragmentation of decision-making, or heterogeneity of supply chains are identified. An independent supply chain risk management function, strong relationships to suppliers and contract manufacturers, a hierarchical supply chain approach, and the use of disruptions as a catalyst for step changes are recommendations to overcome those challenges. The information gathered suggest that a one-size-fits-all approach for the company’s supply chain does not work.