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Risk Factor Management: a Mechanism of Supporting Supply Chain Resilience

Abstract

Supply chain assumes a unique business process without inter-company boundaries. Each supply chain partner is important for achievement of customer requirements. On the one hand, supply chain is an inexhaustible source of competitive advantage, created by the companies, which constitute it. However, on the other hand, due to its complexness, supply chain is an easy target of numerous factors, which jeopardize its competitiveness. Some of those factors are: turbulence, deliberate threats, external pressures, resource limits, sensitivity, and supplier/customer disruptions. Successful dealing with those factors assumes establishment of mechanisms for increasing supply chain resilience. Many researches indicate that some factors have greater influence on supply chain disruption and discontinuance. If those factors can be isolated, it will be easier to manage them or to avoid their influence. Therefore, the objective of the research presented in this paper is identification of the most frequent causes of supply chain disturbances, as a first step for developing supply chain resilience. According to the research results, the authors suggest what should be a primary focus of supply chain management, dealing with issues of resilience. Also, the authors indicate which characteristics (capability factors) supply chains have to have in order to be considered resistant.

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