Supply Chain Risk Management and Resilience

This set of vocabulary flashcards covers key concepts, risk categories, profiles, and resilience enablers within supply chain risk management based on the provided lecture transcript.

Supply chain risk management

A structured and disciplined approach aimed at the effective management of supply chain uncertainties, providing firms the opportunity to manage threats and optimise risk taking.

Supply chain disruptions

Any occurrences that disrupt the standard flow of goods and generate various short- and long-term risks to the supply chain.

Risk perception

The outcome of various factors, including the experiences, education, cultural background of the individual, and organisational culture, which influences how individuals react to conditions involving risk.

Uncertainty

The quality of being indeterminate in terms of magnitude or value; in a risk context, it is defined as "uncertainty based on a well-grounded (quantitative) possibility."

Loss exposure

A situation where the foreseeable consequences of an event, such as a demolished bridge due to a flood, result in a negative cash flow.

Inherent operational risks

Risks that arise from internal operations, such as accidents in the warehouse, equipment failure, human error, and quality issues.

Access risk

An information risk relating to the unauthorised access to privileged supply chain information, such as the cost of goods sold, profit margins, and discounts.

Integrity risk

An information risk involving the accuracy and completeness of supply chain information used for effective decision making.

Infrastructure risk

The risk related to the availability of an optimal information technology infrastructure to support effective supply chain management.

Supply chain security management

A field concerned with protecting supply chain assets (products, facilities, equipment, information, and human resources) from theft, damage, or terrorism.

Supply chain risk profile

A compilation used to seek out "critical paths" in a network where management's attention should be focused, investigating risks from supply, demand, process, control, and environmental sources.

Supply risk

One of the five sources of risk in a profile; it involves potential disruptions caused by global sourcing and the reduction of the supplier base.

Demand risk

A source of risk involving the analysis of dependent and independent demand, ensuring fast information flow to avoid the bullwhip effect.

Control risk

The likelihood of disturbances caused by internal rules, regulations, and decisions such as policies on safety stock, batch sizes, and minimum order quantities.

Supply chain disruption management (SCDM)

A structured and continuous process to analyse the impact of disruptions across the supply chain on predefined objectives and handle them throughout their entire life cycle.

Disruption detection

The phase of SCDM that occurs through identifying a disruption's origin, severity, and consequences via observation or experience in financial and operational performance.

Disruption recovery

The phase of SCDM where firms use resources like capital, labour, and equipment to contain a disruption and develop alternative management strategies.

Supply chain resilience (SCRES)

The ability of a supply chain to return to its natural or better functioning state after experiencing a disturbance.

Flexibility

A capability of SCRES defined as the ability of the supply chain to suddenly change within a limited time frame, with minimal effort and cost or performance losses.

Visibility

The exchange of high-quality, timely, and complete critical information between each node or partner in the supply chain.

Redundancy

The investment in processes, capacity, and assets that allow a firm to switch to different processes to provide adaptability required for resilience.

Agility

The ability of a firm to rapidly adapt to unexpected changes upstream or downstream, ramp up production, and remain competitive by responding efficiently to customer requirements.

Velocity

The efficient and effective manner in which a supply chain adapts and recovers through acceleration, often involving the shortening of inbound lead times.