Citation
The Power of Resilience: How the Best Companies Manage the Unexpected
TL;DR
Theoretical supply chain modularity often fails in practice
This book analyzes supply chain disruptions including the 2011 Tōhoku earthquake's effects on the automotive industry. Sheffi shows how modular supply chain structures that theoretically provide resilience through substitutability often fail in practice.
The analysis supports the chapter's discussion of Toyota's supply chain modularity limitations - theoretical substitutability doesn't automatically translate to practical interchangeability. This informs the concept of 'collaborative modularity' that balances modular architecture with relationship investment.
Key Findings from Sheffi (2015)
- Theoretical supply chain modularity often fails in practice
- Single-source dependencies create hidden vulnerabilities
- Resilience requires visibility into deep supply chain tiers
- Substitutability requires preparation, not just modular design