A supply network is a pattern of temporal and spatial processes carried out at facility nodes and over distribution links, which adds value for customers through the manufacturing and delivery of products. It comprises the general state of business affairs in which all kinds of material (work-in-process material as well as finished products) are transformed and moved between various value-added points to maximize the value added for customers. In the semiconductor industry, for example, work-in-process moves from fabrication to assembly, and then to the test house. The term "supply network" refers to the high-tech phenomenon of contract manufacturing where the brand owner does not touch the product. Instead, she coordinates with contract manufacturers and component suppliers who ship components to the brand owner. This business practice requires the brand owner to stay in touch with multiple parties or "network" at once.
A supply chain is a special instance of a supply network in which raw materials, intermediate materials and finished goods are procured exclusively as products through a chain of processes that supply one another.
A resilient supply network effectively aligns its strategy, operations, management systems, governance structure, and decision-support capabilities so that it can uncover and adjust to continually changing risks, endure disruptions to its primary earnings drivers, and create advantages over less adaptive competitors.[1][2] Moreover, it has the capability to respond rapidly to unforeseen changes, even chaotic disruption. The resilience of a supply network is the ability to bounce back – and, in fact, to bounce forward with speed, determination and precision. In recent studies, resilience is regarded as the next phase in the evolution of traditional, place-centric enterprise structures to highly virtualized, customer-centric structures that enable people to work anytime, anywhere.[3][4]
Resilient supply networks should align its strategy and operations to adapt to risk that affects its capacities. There are 4 levels of supply chain resilience:
reactive supply chain management.
internal supply chain integration with planned buffers.
collaboration across extended supply chain networks.
a dynamic supply chain adaptation and flexibility.[5]
Strategic resilience
From the strategic resilient viewpoint, a supply network must dynamically reinvent business models and strategies as circumstances change. It is not about responding to a one-time crisis, or just having a flexible supply chain. It is about continuously anticipating and adjusting to discontinuities that can permanently impair the value preposition of a core business with focus on delivering customer satisfaction. Strategic resilience requires continuous innovation with respect to product structures, processes, but also corporate behaviour. Renewal can be regarded as the natural consequence of a supply network’s innate strategic resilience.[6]
Operational resilience
In terms of operational resilience, the supply networks must respond to the ups and downs of the business cycle or to quickly rebalance product-service mix, processes, and supply chain, by bolstering enterprises agility, flexibility and robustness in the face of changing environments.[7][8][9]
^Anand, G. and Ward, P., 2004. Fit, Flexibility and Performance in Manufacturing: Coping with Dynamic Environments. Production and Operations Management Journal, 13 (4), pp. 369-385
^Starr, R., Newfrock, J. and Delurey, M., 2002. Enterprise Resilience: Managing Risk in the Networked Economy. Strategy+business, 30
^Bell, M.A., 2002. The Five Principles of Organizational Resilience. Gartner, Inc.
^Christopher, M. and Peck, H., 2004. Building the Resilient Supply Chain International Journal of Logistics Management, 15(2)
^"The Four Levels of Supply Chain Maturity". 27 August 2013.
^Hamel, G. and Välikangas, L., 2003. The Quest for Resilience. Harvard Business Review.
^Robb, D., 2000. Building Resilient Organizations. OD Practitioner, vol. 32(3).
^Coutou, D.L., 2002. How Resilience Works. Harvard Business Review, May.
External links
Glossary of supply chain standards
August 21, 2023
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This article is about supply chain networks For networks supplying water see Water supply network For networks supplying electricity see Electric power transmission For networks supplying heat or cold see District heating For networks transporting sewerage see Sanitary sewer For networks supplying natural gas see Natural gas For networks supplying oil see Pipeline transport A supply network is a pattern of temporal and spatial processes carried out at facility nodes and over distribution links which adds value for customers through the manufacturing and delivery of products It comprises the general state of business affairs in which all kinds of material work in process material as well as finished products are transformed and moved between various value added points to maximize the value added for customers In the semiconductor industry for example work in process moves from fabrication to assembly and then to the test house The term supply network refers to the high tech phenomenon of contract manufacturing where the brand owner does not touch the product Instead she coordinates with contract manufacturers and component suppliers who ship components to the brand owner This business practice requires the brand owner to stay in touch with multiple parties or network at once A supply chain is a special instance of a supply network in which raw materials intermediate materials and finished goods are procured exclusively as products through a chain of processes that supply one another Contents 1 Resilient supply networks 1 1 Strategic resilience 1 2 Operational resilience 2 See also 3 References 4 External linksResilient supply networks EditA resilient supply network effectively aligns its strategy operations management systems governance structure and decision support capabilities so that it can uncover and adjust to continually changing risks endure disruptions to its primary earnings drivers and create advantages over less adaptive competitors 1 2 Moreover it has the capability to respond rapidly to unforeseen changes even chaotic disruption The resilience of a supply network is the ability to bounce back and in fact to bounce forward with speed determination and precision In recent studies resilience is regarded as the next phase in the evolution of traditional place centric enterprise structures to highly virtualized customer centric structures that enable people to work anytime anywhere 3 4 Resilient supply networks should align its strategy and operations to adapt to risk that affects its capacities There are 4 levels of supply chain resilience reactive supply chain management internal supply chain integration with planned buffers collaboration across extended supply chain networks a dynamic supply chain adaptation and flexibility 5 Strategic resilience Edit From the strategic resilient viewpoint a supply network must dynamically reinvent business models and strategies as circumstances change It is not about responding to a one time crisis or just having a flexible supply chain It is about continuously anticipating and adjusting to discontinuities that can permanently impair the value preposition of a core business with focus on delivering customer satisfaction Strategic resilience requires continuous innovation with respect to product structures processes but also corporate behaviour Renewal can be regarded as the natural consequence of a supply network s innate strategic resilience 6 Operational resilience Edit In terms of operational resilience the supply networks must respond to the ups and downs of the business cycle or to quickly rebalance product service mix processes and supply chain by bolstering enterprises agility flexibility and robustness in the face of changing environments 7 8 9 See also EditDocument automation in supply chain management amp logistics Supply network operations Value network Value network analysis LogisticsReferences Edit Anand G and Ward P 2004 Fit Flexibility and Performance in Manufacturing Coping with Dynamic Environments Production and Operations Management Journal 13 4 pp 369 385 Starr R Newfrock J and Delurey M 2002 Enterprise Resilience Managing Risk in the Networked Economy Strategy business 30 Bell M A 2002 The Five Principles of Organizational Resilience Gartner Inc Christopher M and Peck H 2004 Building the Resilient Supply Chain International Journal of Logistics Management 15 2 The Four Levels of Supply Chain Maturity 27 August 2013 Hamel G and Valikangas L 2003 The Quest for Resilience Harvard Business Review Mallak L 1998 Putting Organizational Resilience to Work Industrial Management November December Robb D 2000 Building Resilient Organizations OD Practitioner vol 32 3 Coutou D L 2002 How Resilience Works Harvard Business Review May External links EditGlossary of supply chain standards Retrieved from https en wikipedia org w index php title Supply network amp oldid 1111496979, wikipedia, wiki, book, books, library,
