How Supply Chains Can Endure Throughout Crises

The Covid-19 pandemic has been notable for many things, but one of the most visceral were the scenes in supermarkets in the early stages of the crisis, as shops struggled to cope with the surge in demand from consumers panicking about shortages of supplies.

New research from the University at Buffalo School of Management proposes a new framework to help make supply chains more resilient in similar crises in future, and to avoid the frenzied scenes scene during those early weeks of the pandemic.

“The challenges of pandemics and other catastrophic events demand new strategies for addressing supply chain failures that can cripple an entire world,” the researchers explain. “Our method provides a valuable structure for ensuring supply chain resilience, identifying risks, developing recovery tactics and continuous learning and improvement.”

Phased approach

The framework consists of a number of phases that aim to combine core business continuity management standards alongside key qualities, such as flexibility and agility to enable supply chains to adapt to volatile business situations.

The framework follows a “Plan-Do-Check-Act” (PDCA) cycle, with managers them examining the context the supply chain operates in, before ensuring leadership is committed, risk is identified, disruption is planned for, procedures are tested, and the whole process continuously improved upon.

“Business continuity management approaches don’t sufficiently address the inter-organizational processes involved in supply chain management,” the researchers say. “But the risk management approaches by scholars and practitioners have been fragmented, resulting in a lack of structure and ability to cope with unexpected demand volatility. Our framework draws on the strengths of both.”

The researchers believe that the framework would have been beneficial to organizations during the coronavirus pandemic, especially in terms of keeping supplies of medical and food supplies going.

“The grocery industry has become too lean in recent years, operating with low inventory levels and sacrificing resilience for leanness,” the researchers conclude. “Meanwhile, production of medical devices and personal protective equipment relies on suppliers around the world—who all were also affected by the virus. Our approach would help identify risk in both of these situations.”

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