Supply Chain Vulnarability

CIPS Knowledge Works

Supply Chain Vulnerability

Contents

1. Inroduction 2. The CIPS Position 3. Context 4. Impacts on Procurement 5. Practical Steps to Improving SCV 6. Scope 7. Summary 8. References 9. Further Rreading pg3 pg4 pg5 pg7 pg7 pg9 pg10 pg11 pg11

Tel +44(0)1780 756777 Fax +44(0)1780 751610 Email ckw@cips.org Web www.cips.org

JAN 06

Welcome to a guide on Supply Chain Vulnerability

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Tel +44(0)1780 756777 Fax +44(0)1780 751610 Email ckw@cips.org Web www.cips.org

JAN 06

Recent growth in globalisation has created more complex supply chains and with that greater risks. Examining the vulnerability of an organisation’s supply chain network can be used to identify such risks and weaknesses and produce mitigation strategies and corrective action plans as part of managing risk in procurement.

1. INTRODUCTION

For the purposes of this paper Supply Chain Vulnerability (SCV) is a point of weakness and/or possible threat to the supply chain network. These complex networks may increase the number of potential weaknesses in surety of supply, as may the use of other modern business practices. The following is an example of when vulnerability changes from a ‘point of weakness’ to a serious risk. A car with bald tyres is travelling along a motorway at 90 miles an hour. The bald tyres are a point of weakness that may only be highlighted when it starts raining and the car has to apply its brakes to avoid a traffic jam ahead. The risk would of course be that the car wouldn’t stop in time as the bald tyres on the wet surface would have no grip on the road surface and as a result it goes into the back of the car in front, potentially causing a pile up. Recent growth in globalisation has created more complex supply chains and with that greater risks. Examining the vulnerability of an organisation’s supply chain network can be used to identify such risks and weaknesses and produce mitigation strategies and corrective action plans as part of...