Recovery Method of Supply Chain Under Ripple Effect: Supply Chain Event Management (SCEM) Application

Abstract

Facing the new challenges that arise in supply chains (SC) such as globalization itself, implies not only managing a geographical expansion across the planet, but also depending on third parties, whether these suppliers, partners, members, distributors or customers themselves, whether they are just around the corner or on the other side of the planet, managing a network dependent on third parties becomes increasingly complex and vulnerable to a ripple effect (RE) in the event of disruption, ensure good performance will depend on everyone working collaboratively. Therefore, it is important to look for methods or tools that reduce the vulnerability of the RE into a SC and, in turn, promote collaboration and visibility. Methodologies such as Supply Chain Event Management (SCEM) include processes and systems that alert to unplanned changes, also called disruptive events (DE), in supply lines or other processes in order to respond with alternatives, through its five functionalities: monitoring, notification, simulation, control and measurement of SC activities. This helps to ensure the good performance of a company, of its entire SC and to diminish the RE of global networks.