Title: Amplifiers of Supply Chain Disruptions: A Managerial Framework for Reducing the Impact of Disruption to the Supply Chain | SCM | Supply Chain Resource Cooperative (SCRC) | North Carolina State UniversitySupply Chain Resource Cooperative | NC State University
Headings: Amplifiers of Supply Chain Disruptions: A Managerial Framework for Reducing the Impact of Disruption to the Supply Chain
Amplifiers of Supply Chain Disruptions: A Managerial Framework for Reducing the Impact of Disruption to the Supply Chain
Amplifiers of Supply Chain Disruptions
The extent to which a firm relies on global sources of supply
The complexity of the product or process
Table 1 – Global Sourcing Amplifiers of Disruption
Table 2 – Product / Process Complexity Amplifiers of Disruption

Content: On the other hand, as companies simplify their supply chains, there are fewer nodes to monitor, and supply chain designs offering simple solutions become easier to create. * For example a major logistics provider noted that a product’s complexity, quality requirements, number of unique parts, perishability and storage requirements, and part size (small gets lost) increases the difficulty of managing problems when and if they occur. A major retailer also noted that its quality requirements are non-negotiable – and if a product does not pass inspection, it will not ship. * A large manufacturer of appliances had developed a new convection oven that caught customers’ fancy, and began selling quickly. Distributors were unable to order more in time, although they knew a competitor would soon enter the market with a similar product. The reason attributable to this shortage (and the resulting loss of market share capture)?: a sole sourced supplier in China who was plating the oven grill! The supplier had been outsourced from their first tier supplier, and it had taken the manufacturer several weeks to discover the source of the capacity shortage. When they finally discovered the source of the parts shortage, they discovered that the supplier was working three shifts, and was unable to produce enough grills, thereby causing a major bottleneck. By the time a second supplier was located and qualified, the competition had established a toe-hold in the market and was already taking market share.