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Ensuring Supply Chain Resilience: Development and Implementation of an Assessment Tool

Authors


Corresponding author:

Timothy Pettit, U.S. Air Force Academy, Department of Management, Fairchild Hall, USAF Academy, CO 80840, USA; E-mail: Timothy.pettit@usafa.edu

Abstract

In today's tightly connected global economy, traditional management practices that rely on “steady-state” conditions are challenged by chaotic external pressures and turbulent change. Just in the last few years, the world has experienced a string of catastrophic events, including a global economic meltdown, a volcanic eruption in Iceland, an oil spill in the Gulf of Mexico, a disastrous tsunami and power blackout in Japan, and political upheavals in Africa and the Middle East. Managing the risk of an uncertain future is a challenge that requires resilience—the ability to survive, adapt, and grow in the face of turbulent change. This research develops a measurement tool titled the Supply Chain Resilience Assessment and Management (SCRAM™). Data gathered from seven global manufacturing and service firms are used to validate SCRAM™, using qualitative methodology with 1,369 empirical items from focus groups reviewing 14 recent disruptions. Critical linkages are uncovered between the inherent vulnerability factors and controllable capability factors. Through mixed-method triangulation, this research identified 311 specific linkages that can be used to guide a resilience improvement process. Pilot testing suggests a correlation between increased resilience and improved supply chain performance.

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