A General Framework for Building Resilient Global Supply Chains

Abstract

With the rapid globalization and expansion of supply chains, the risk of disruptions has increased, leading to severe financial losses and operational shutdowns. The pursuit of global integration and efficiency has further exposed supply chains to many vulnerabilities and risks. This paper presents a systematic and comprehensive approach to building a resilient supply chain through effective risk management. The proposed methodology is adaptable to various supply chain applications and encompasses a series of assessment steps to identify, evaluate, and mitigate risks, uncertainties, and disruptions. Additionally, we propose optimizing the selection of strategies and corresponding specification levels to enhance supply chain resilience. By adopting this systematic and comprehensive approach, organizations can proactively identify and address risks, uncertainties, and disruptions in their supply chains. Moreover, the proposed framework enables the selection and implementation of effective mitigation strategies, resulting in improved supply chain resilience and minimized financial losses. Lastly, we present a general case of adapting the framework to Liquified Natural Gas (LNG) supply chain as an example of the ability of the framework to be adopted by various types of supply chains.