Sustainable and Resilient Supply Chains

Abstract

In present-day, uncertain, dynamic and turbulent markets, supply chain vulnerability has become an issue of significance for many companies (Helmold M, Establishing a best-practice model of supplier relationship management (SRM) in multinational companies in the European transportation industry. Wissenschaftlicher Verlag, Berlin, 2013). As value and supply chains are constantly becoming more complex as a result of global sourcing and the continued trend towards leaner and more efficient organisations, supply chain risk increases (Dust R, Process and cost potentials through Total Supplier Management. A study of the degree of implementation and the contribution of supplier management to safeguarding competitiveness and corporate success. 11/2009, pp 1–35, 2009). The challenge to enterprises today is to prevent, manage and mitigate that risk through creating more resilient supply chains (Emmett S, Crocker B Excellence in supplier management. How to better manage contracts with suppliers and add value. Best practices in supplier relationship and supplier development. Cambridge Academic, Cambridge, 2009). Supply managers aim at achieving the ideals of fully integrated efficient and effective supply chains, capable of creating and sustaining competitive advantage (Helmold M, Establishing a best-practice model of supplier relationship management (SRM) in multinational companies in the European transportation industry. Wissenschaftlicher Verlag, Berlin, 2013). To this end they must balance downward and operational cost pressures and the need for efficiency and improvement, with effective means to manage the demands of market-driven service requirements and the known risks of routine supply chain failures. Better management and control of internal processes together with more open information flows within and between organisations can do much to help.