Capability factors for supply chain resilience
| Capability factor | Definition | Sub-factors |
|---|---|---|
| Flexibility in sourcing | Ability to quickly change inputs or the mode of receiving inputs | Part commonality, Modular product design, Multiple uses, Supplier contract flexibility, Multiple sources |
| Flexibility in order fulfillment | Ability to quickly change outputs or the mode of delivering outputs | Alternate distribution channels, Risk pooling/sharing, Multi-sourcing, Delayed commitment, Production postponement, Inventory management, Rerouting of requirements |
| Capacity | Availability of assets to enable sustained production levels | Reserve capacity, Redundancy, Backup energy sources and communications |
| Efficiency | Capability to produce outputs with minimum resource requirements | Waste elimination, Labor productivity, Asset utilization, Product variability reduction, Failure prevention |
| Visibility | Knowledge of the status of operating assets and the environment | Business intelligence gathering, Information technology, Products, Assets and People visibility, Information exchange |
| Adaptability | Ability to modify operations in response to challenges or opportunities | Fast rerouting of requirements, Lead time reduction, Strategic gaming and simulation, Seizing advantage from disruptions, Alternative technology development, Learning from experience |
| Anticipation | Ability to discern potential future events or situations | Monitoring early warning signals, Forecasting, Deviation and Near-miss analysis, Contingency planning, Preparedness, Risk management, Business continuity planning, Recognition of opportunities |
| Recovery | Ability to return to normal operational state rapidly | Crisis management, Resource mobilization, Communications strategy, Consequence mitigation |
| Dispersion | Broad distribution or decentralization of assets | Distributed decision-making, Distributed capacity and assets, Decentralization of key resources, Location-specific empowerment, Dispersion of markets |
| Collaboration | Ability to work effectively with other entities for mutual benefit | Collaborative forecasting, Customer management, Communications, Postponement of orders, Product life cycle management, Risk sharing with partners |
| Organization | Human resource structures, policies, skills and culture | Learning, Accountability and Empowerment, Teamwork, Creative problem solving, Cross training, Substitute leadership, Culture of caring |
| Market position | Status of a company or its products in specific markets | Product differentiation, Customer loyalty/retention Market share, Brand equity, Customer relationships, Customer communications |
| Security | Defense against deliberate intrusion or attack | Layered defenses, Access restrictions, Employee involvement, Collaboration with governments, Cyber-security, Personnel security |
| Financial strength | Capacity to absorb fluctuations in cash flow | Insurance, Portfolio diversification, Financial reserves and liquidity, Price margin |
| Capability factor | Definition | Sub-factors |
|---|---|---|
| Flexibility in sourcing | Ability to quickly change inputs or the mode of receiving inputs | Part commonality, Modular product design, Multiple uses, Supplier contract flexibility, Multiple sources |
| Flexibility in order fulfillment | Ability to quickly change outputs or the mode of delivering outputs | Alternate distribution channels, Risk pooling/sharing, Multi-sourcing, Delayed commitment, Production postponement, Inventory management, Rerouting of requirements |
| Capacity | Availability of assets to enable sustained production levels | Reserve capacity, Redundancy, Backup energy sources and communications |
| Efficiency | Capability to produce outputs with minimum resource requirements | Waste elimination, Labor productivity, Asset utilization, Product variability reduction, Failure prevention |
| Visibility | Knowledge of the status of operating assets and the environment | Business intelligence gathering, Information technology, Products, Assets and People visibility, Information exchange |
| Adaptability | Ability to modify operations in response to challenges or opportunities | Fast rerouting of requirements, Lead time reduction, Strategic gaming and simulation, Seizing advantage from disruptions, Alternative technology development, Learning from experience |
| Anticipation | Ability to discern potential future events or situations | Monitoring early warning signals, Forecasting, Deviation and Near-miss analysis, Contingency planning, Preparedness, Risk management, Business continuity planning, Recognition of opportunities |
| Recovery | Ability to return to normal operational state rapidly | Crisis management, Resource mobilization, Communications strategy, Consequence mitigation |
| Dispersion | Broad distribution or decentralization of assets | Distributed decision-making, Distributed capacity and assets, Decentralization of key resources, Location-specific empowerment, Dispersion of markets |
| Collaboration | Ability to work effectively with other entities for mutual benefit | Collaborative forecasting, Customer management, Communications, Postponement of orders, Product life cycle management, Risk sharing with partners |
| Organization | Human resource structures, policies, skills and culture | Learning, Accountability and Empowerment, Teamwork, Creative problem solving, Cross training, Substitute leadership, Culture of caring |
| Market position | Status of a company or its products in specific markets | Product differentiation, Customer loyalty/retention Market share, Brand equity, Customer relationships, Customer communications |
| Security | Defense against deliberate intrusion or attack | Layered defenses, Access restrictions, Employee involvement, Collaboration with governments, Cyber-security, Personnel security |
| Financial strength | Capacity to absorb fluctuations in cash flow | Insurance, Portfolio diversification, Financial reserves and liquidity, Price margin |
Source(s): Table adapted from Pettit et al. (2010)
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