Press the play button on the model below, then use the Map, Logic and Statistics tabs to follow how a disruption spreads.
Disruptions in the supply chain refer to unexpected events that can negatively impact the flow of goods and services. Disruptions can be caused by a variety of factors such as natural disasters, supplier bankruptcy, labor strikes, political instability, and pandemics. Disruptions can have serious consequences for companies, such as lost sales, production delays, increased costs, and damage to reputation. In supply chain management, companies can use risk management techniques to mitigate the impact of disruptions. For example, companies can implement contingency plans, such as alternative sourcing options or safety stock, to ensure continuity of supply. Companies can also invest in supply chain visibility tools to monitor supplier performance and identify potential disruptions early on. In addition, companies can collaborate with suppliers and customers to develop risk-sharing strategies that can help to minimize the impact of disruptions on all parties. Disruptions are an ever-present risk in the supply chain, and effective risk management strategies are essential for ensuring the resiliency and sustainability of supply chain operations.
Disruptions test how fast a network detects, absorbs and recovers.
A shock hits capacity or supply; response levers - rerouting, buffers, dual sourcing - shape the recovery curve.
Cut time-to-detect first; every early day is worth more than buffer stock.
