Citation
From superstorms to factory fires: Managing unpredictable supply-chain disruptions
TL;DR
Supply chain visibility must extend beyond Tier 1
This article provides a framework for supply chain risk management and discusses Toyota's post-2011 supply chain visibility improvements. The authors show how companies can identify and manage supply chain vulnerabilities.
This directly supports the chapter's discussion of Toyota's response to the Tōhoku earthquake - developing better supply chain visibility by mapping deeper tiers, identifying single-source components, and working with suppliers to develop secondary sources.
Key Findings from Simchi-Levi et al. (2014)
- Supply chain visibility must extend beyond Tier 1
- Risk assessment should identify critical single-source components
- Companies should develop secondary sources for high-risk parts
- Collaborative relationships strengthen supply chain resilience