Table 2

Capability factors for supply chain resilience

Capability factorDefinitionSub-factors
Flexibility in sourcingAbility to quickly change inputs or the mode of receiving inputsPart commonality, Modular product design, Multiple uses, Supplier contract flexibility, Multiple sources
Flexibility in order fulfillmentAbility to quickly change outputs or the mode of delivering outputsAlternate distribution channels, Risk pooling/sharing, Multi-sourcing, Delayed commitment, Production postponement, Inventory management, Rerouting of requirements
CapacityAvailability of assets to enable sustained production levelsReserve capacity, Redundancy, Backup energy sources and communications
EfficiencyCapability to produce outputs with minimum resource requirementsWaste elimination, Labor productivity, Asset utilization, Product variability reduction, Failure prevention
VisibilityKnowledge of the status of operating assets and the environmentBusiness intelligence gathering, Information technology, Products, Assets and People visibility, Information exchange
AdaptabilityAbility to modify operations in response to challenges or opportunitiesFast rerouting of requirements, Lead time reduction, Strategic gaming and simulation, Seizing advantage from disruptions, Alternative technology development, Learning from experience
AnticipationAbility to discern potential future events or situationsMonitoring early warning signals, Forecasting, Deviation and Near-miss analysis, Contingency planning, Preparedness, Risk management, Business continuity planning, Recognition of opportunities
RecoveryAbility to return to normal operational state rapidlyCrisis management, Resource mobilization, Communications strategy, Consequence mitigation
DispersionBroad distribution or decentralization of assetsDistributed decision-making, Distributed capacity and assets, Decentralization of key resources, Location-specific empowerment, Dispersion of markets
CollaborationAbility to work effectively with other entities for mutual benefitCollaborative forecasting, Customer management, Communications, Postponement of orders, Product life cycle management, Risk sharing with partners
OrganizationHuman resource structures, policies, skills and cultureLearning, Accountability and Empowerment, Teamwork, Creative problem solving, Cross training, Substitute leadership, Culture of caring
Market positionStatus of a company or its products in specific marketsProduct differentiation, Customer loyalty/retention Market share, Brand equity, Customer relationships, Customer communications
SecurityDefense against deliberate intrusion or attackLayered defenses, Access restrictions, Employee involvement, Collaboration with governments, Cyber-security, Personnel security
Financial strengthCapacity to absorb fluctuations in cash flowInsurance, Portfolio diversification, Financial reserves and liquidity, Price margin

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

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