Executive Briefings

Manufacturing Reported to Be Most Affected by 'Chronic Disruption'

Chronic disruption, a pervasive phenomenon referring to a persistent disruption that degrades but does not inhibit supply chain function and that does not respond to traditional remedies, affects manufacturing most, according to an APICs Supply Chain Council survey.

It is an issue that supply chain and operations management professionals need to understand and design supply chains to mitigate against.

 “The APICS body of knowledge covers core aspects of chronic disruption -- strategy, risk frameworks, supply chain synchronization, and supplier relationship management,” said Peter Bolstorff, APICS Supply Chain Council Executive Director. “Achieving excellence in supply chain and operations management requires the detection and elimination of everything that interferes with optimal efficiency, including chronic disruption.”

The survey discovered chronic disruption is frequently caused by internal issues that are hard to recognize and even more difficult to measure. These causes often include a lack of manpower or trained manpower, a lack of updated information technology, short-term financial pressures and more.

The survey also found that while many industries are impacted by chronic disruption, manufacturing was most impacted, 41 percent, followed by health care and pharmaceuticals, 10 percent, and the food and beverage industry, 10 percent.

“It is important to recognize both chronic and situational disruption because it enables supply chain and operations management professionals to align supply chain strategy with risk management processes,” Bolstorff said. “Being aware of risks brought on by disruption and having appropriate response scenarios helps mitigate or avoid negative impact. The SCOR framework is helping organizations define the value of risk and organize their processes to manage it.”

For additional information and to view the full report, click here.

Source: APICS Supply Chain Council

It is an issue that supply chain and operations management professionals need to understand and design supply chains to mitigate against.

 “The APICS body of knowledge covers core aspects of chronic disruption -- strategy, risk frameworks, supply chain synchronization, and supplier relationship management,” said Peter Bolstorff, APICS Supply Chain Council Executive Director. “Achieving excellence in supply chain and operations management requires the detection and elimination of everything that interferes with optimal efficiency, including chronic disruption.”

The survey discovered chronic disruption is frequently caused by internal issues that are hard to recognize and even more difficult to measure. These causes often include a lack of manpower or trained manpower, a lack of updated information technology, short-term financial pressures and more.

The survey also found that while many industries are impacted by chronic disruption, manufacturing was most impacted, 41 percent, followed by health care and pharmaceuticals, 10 percent, and the food and beverage industry, 10 percent.

“It is important to recognize both chronic and situational disruption because it enables supply chain and operations management professionals to align supply chain strategy with risk management processes,” Bolstorff said. “Being aware of risks brought on by disruption and having appropriate response scenarios helps mitigate or avoid negative impact. The SCOR framework is helping organizations define the value of risk and organize their processes to manage it.”

For additional information and to view the full report, click here.

Source: APICS Supply Chain Council