Table 1

Factors that cause disruptions or changes in the supply chain

Vulnerability factorDefinitionSub-factors
TurbulenceEnvironment characterized by frequent changes in external factors beyond your controlNatural disasters, Geopolitical disruptions, Unpredictability of demand, Fluctuations in currencies and prices, Technology failures, Pandemic
Deliberate threatsIntentional attacks aimed at disrupting operations or causing human or financial harmTheft, Terrorism/sabotage, Labor disputes, Espionage, Special interest groups, Product liability
External pressuresInfluences, not specifically targeting he firm, that create business constraints or barriersCompetitive innovation, Social/Cultural change, Political/Regulatory change, Price pressures, Corporate responsibility Environmental change
Resource limitsConstraints on output based on availability of the factors of productionSupplier, Production and Distribution capacity, Raw material and Utilities availability, Human resources
SensitivityImportance of carefully controlled conditions for product and process integrityComplexity, Product purity, Restricted materials, Fragility, Reliability of equipment, Safety hazards, Visibility to stakeholders, Symbolic profile of brand, Concentration of capacity
ConnectivityDegree of interdependence and reliance on outside entitiesScale of network, Reliance upon information, Degree of outsourcing, Import and Export channels, Reliance upon specialty sources
Supplier/customer disruptionsSusceptibility of suppliers and customers to external forces or disruptionsSupplier reliability, Customer disruptions

Source(s): Table adapted from Pettit et al. (2010) 

or Create an Account

Close Modal
Close Modal