-
The Impact of Cloud Based Supply Chain Management on Supply Chain Resilience
-
On March 2011 a destructive 9.0-magnitude earthquake and tsunami along with nuclear explosions struck northeastern Japan; killing thousands of people, halting industry and crippling infrastructure. A large manufacturing company operating outside of Japan received the news in the middle of the night. Within a few hours of the tsunami hitting Japan, this manufacturer’s logistics team ran global materials management reports to communicate the precise status of the products originating from Japan to their entire global network of facilities. With this quick and far reaching communication the manufacturer was able to launch a successful contingency plan. Alternative suppliers, already existing as part of their global network, were evaluated and used to mitigate Japan’s disruptive impact. The resiliency of this manufacturer’s trusted network of supply chain trading partners allowed for minimum disruptions, saving countless money and maintaining continuity for its end-to-end supply chain. This manufacturer was part of a cloud-based supply chain that provided the catalyst to quickly shift its resources to allay the impact of no longer being able to receive product from Japan. Today's supply chains are global and complex networks of enterprises that aim to deliver products in the right quantity, in the right place, and at the right time in an increasingly volatile and unpredictable environment. To cope with internal and external supply chain instability and disruptions, supply chains need to be resilient to survive. A supply chain's ability to collaboratively share information with its supply chain partners is one of the most important factors that enhance a supply chain’s resilience. Cloud based supply chain management (SCM) creates a platform that enables collaborative information sharing that helps to identify, monitor and reduce supply chain risks, vulnerabilities and disruptions. However, supply chain academics and practitioners are at its infancy in understanding the capabilities of cloud based supply chains and …