Supply Chain Resilience: The Flow of Information
Continuity: The Magazine of Business Continuity Institute 2014
Peters Mensahs, Jurijs Merkurjevs

The focus on low-cost production in countries such as India, China and some other Asian countries, particularly in the years preceding the financial crisis of 2008, helped many multinational organisations reduce costs and boost profits. However, for many of those companies, the supply chain-related risks of such a strategy were not fully recognised by managers and the increased fragility this caused has resulted in numerous supply disruptions over recent years. Organisations are now much more aware of the disruptive threats posed by events such as natural disasters, terrorism, shrinking product lifecycles, cyber attacks, volatile and unpredictable markets. However, one area which can also have a significant impact on the supply chain is the risk of miscommunication. According to a Holmes Report issued in 2011, miscommunication cost some 400 organisations in the UK and the US approximately US$37 billion (Grossman, 2011). A recent example of how such losses can occur, which was reported by BBC News Europe earlier this year, involved French train operator SNCF. The firm purchased 2,000 new trains at a cost of €15 billion only to find that they were too wide for many regional platforms and to date has had to pay an additional €50 million to widen the platforms. It is essential that organisations develop resilient supply chains that enable them to avoid such miscommunication risks by ensuring the accurate and transparent flow of information. By doing so, even when such disruptive events occur they are able to capitalise on this to reduce their response time and shorten the duration of the supply chain breakdown.


Atslēgas vārdi
Supply Chain, Resilience, Riska, Simulation

Mensahs, P., Merkurjevs, J. Supply Chain Resilience: The Flow of Information. Continuity: The Magazine of Business Continuity Institute, 2014, Vol.Q3, 47.-48.lpp. e-ISSN 2046-5874.

Publikācijas valoda
English (en)
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