Strategies for maximizing supply chain resilience : learning from the past to prepare for the future

Abstract

The terrorist attacks undertaken by Osama bin Laden's al Qaeda organization on the morning of September 11, 2001 ushered in a new era of indiscriminate global terrorism characterized by an unprecedented focus on security, risk management, and business continuity. The probability of future attacks, coupled with government response to the threat, has introduced myriad new challenges that virtually every manufacturer, distributor, and retailer engaged in global commerce must now face. This thesis will explore and analyze the impact that the "new" terrorist threat has, and will continue to have, on the supply chains of those manufacturers, distributors, and retailers by studying relevant historical disruptions; in essence, looking to the past to glean important insights as to how enterprises can best prepare for the future. Throughout history, numerous disruptive events have occurred that bear comparison to a potential terrorist attack. These events include earthquakes, hurricanes, floods, industrial accidents, and labor strikes, as well as other terrorist attacks. By studying such events in detail and understanding the impact that they had on the supply chains of companies that were affected, important lessons can be learned regarding how best to prepare for, and react to, future disruptions. This thesis project ultimately seeks to collect, analyze, and synthesize historical data with the goal of presenting insights and conclusions that can be applied by businesses in the current operating environment to best prepare their supply chains for future disruptions, whether natural or man-made. All research results are organized and presented in terms of the nature of the specific supply chain disruption (key supplier down, transportation capability disrupted, etc.)

(cont.), as opposed to the nature, location, or other defining characteristics of the disaster itself. Conclusions consist of a discussion of the unifying themes and the relevant lessons learned. The thesis then goes on to recommend ten prescriptive measures that organizations can take in today's business environment to strengthen their supply chains, minimize their exposure to future disruptions, and maximize their operational resilience.