Question

(40) What does it mean when we say that a supply chain is resilient? What practical steps can you, as a supply chain manager, take to make your supply chain to be resilient?

(41) Exchange rates among major economies in the world fluctuate daily. Clearly explain how this can pose a risk for a company and its associated supply chain. How might a company mitigate such risk?

(42) Clearly describe the impact that the “Internet”, as a technology, is having on supply chains. What are the challenges it poses to companies?

Answer 1

A) The resistance of the supply chain refers to the abilities of the supply chain to withstand any kind of disruptions in the operational activities and how easily the supply chain can recover and resume its capabilities after the disruption happens. Both of these factors are really important in establishing the performance of the supply chain.

Steps to increase supply chain resilience are:-

• Analyzing the various risks posed by variables in the operations of a supply chain helps in foreseeing some of the disruptions which help the supply chain in avoidance of the risk for a longer period of time.
• The Supply Chain Management must be open to evolving with the changing times to ensure that the operations of the supply chain don't face a setback when faced with disruptive technology.
• Building response plans for various risks such as man-made and natural disasters can help the supply chain in recovering from the dsirutpons effectively and quickly.