A New Metric for Measuring Supply Chain Resiliency
By: Resilinc April 06, 2017
An Introduction to Resilinc R Score™ and its Application to the High-Tech Industry Supply Chain
This paper introduces a new metric for measuring supply chain resiliency. The authors discuss the need for a new metric and the historical challenges associated with creating a standard way to measure resiliency. The paper introduces the Resilinc R Score™ and explains the methodology for computing the score, breaks down the score into its elements and explains how the calculation works. The R Score™ can enable a company to enhance its sourcing process (by having greater understanding of a potential suppliers’ resiliency). It also provides a capability to communicate internally to leadership regarding the current status of their overall program and areas for further improvement, which are top of mind questions for BOD, CEO/CFO, Underwriters, etc. The R Score™ provides a measurable framework to benchmark with competitors and industry peers and over time, show progress on improving their program. The methodology is applied to over 3,000 companies in the High-Tech industry supply chain, of which about 50% are Tier 1 and the rest are Tier 2 suppliers. It breaks down the average vs. best in class scores for each element and explains the industry or company level characteristics that affect the score and provides recommendations for how industry executives can use the score to influence change and measure progress over time.