Factors that cause disruptions or changes in the supply chain
| Vulnerability factor | Definition | Sub-factors |
|---|---|---|
| Turbulence | Environment characterized by frequent changes in external factors beyond your control | Natural disasters, Geopolitical disruptions, Unpredictability of demand, Fluctuations in currencies and prices, Technology failures, Pandemic |
| Deliberate threats | Intentional attacks aimed at disrupting operations or causing human or financial harm | Theft, Terrorism/sabotage, Labor disputes, Espionage, Special interest groups, Product liability |
| External pressures | Influences, not specifically targeting he firm, that create business constraints or barriers | Competitive innovation, Social/Cultural change, Political/Regulatory change, Price pressures, Corporate responsibility Environmental change |
| Resource limits | Constraints on output based on availability of the factors of production | Supplier, Production and Distribution capacity, Raw material and Utilities availability, Human resources |
| Sensitivity | Importance of carefully controlled conditions for product and process integrity | Complexity, Product purity, Restricted materials, Fragility, Reliability of equipment, Safety hazards, Visibility to stakeholders, Symbolic profile of brand, Concentration of capacity |
| Connectivity | Degree of interdependence and reliance on outside entities | Scale of network, Reliance upon information, Degree of outsourcing, Import and Export channels, Reliance upon specialty sources |
| Supplier/customer disruptions | Susceptibility of suppliers and customers to external forces or disruptions | Supplier reliability, Customer disruptions |
| Vulnerability factor | Definition | Sub-factors |
|---|---|---|
| Turbulence | Environment characterized by frequent changes in external factors beyond your control | Natural disasters, Geopolitical disruptions, Unpredictability of demand, Fluctuations in currencies and prices, Technology failures, Pandemic |
| Deliberate threats | Intentional attacks aimed at disrupting operations or causing human or financial harm | Theft, Terrorism/sabotage, Labor disputes, Espionage, Special interest groups, Product liability |
| External pressures | Influences, not specifically targeting he firm, that create business constraints or barriers | Competitive innovation, Social/Cultural change, Political/Regulatory change, Price pressures, Corporate responsibility Environmental change |
| Resource limits | Constraints on output based on availability of the factors of production | Supplier, Production and Distribution capacity, Raw material and Utilities availability, Human resources |
| Sensitivity | Importance of carefully controlled conditions for product and process integrity | Complexity, Product purity, Restricted materials, Fragility, Reliability of equipment, Safety hazards, Visibility to stakeholders, Symbolic profile of brand, Concentration of capacity |
| Connectivity | Degree of interdependence and reliance on outside entities | Scale of network, Reliance upon information, Degree of outsourcing, Import and Export channels, Reliance upon specialty sources |
| Supplier/customer disruptions | Susceptibility of suppliers and customers to external forces or disruptions | Supplier reliability, Customer disruptions |
Source(s): Table adapted from Pettit et al. (2010)
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