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The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage


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  • Yossi Sheffi

    (Massachusetts Institute of Technology)

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    What happens when fire strikes the manufacturing plant of the sole supplier for the brake pressure valve used in every Toyota? When a hurricane shuts down production at a Unilever plant? When Dell and Apple chip manufacturers in Taiwan take weeks to recover from an earthquake? When the U.S. Pacific ports are shut down during the Christmas rush? When terrorists strike? In The Resilient Enterprise, Yossi Sheffi shows that companies' fortunes in the face of such business shocks depend more on choices made before the disruption than they do on actions taken in the midst of it—and that resilience benefits firms every day, disaster or no disaster. He shows how companies can build in flexibility throughout their supply chains, based on proven design principles and the right culture—balancing security, redundancy, and short-term profits. And he shows how investments in resilience and flexibility not only reduce risk but create a competitive advantage in the increasingly volatile marketplace. Sheffi describes the way companies can increase security—reducing the likelihood of a disruption—with layered defenses, the tracking and analysis of “near-misses,” fast detection, and close collaboration with government agencies, trading partners, and even competitors. But the focus of the book is on resilience—the ability to bounce back from disruptions and disasters—by building in redundancy and flexibility. For example, standardization, modular design, and collaborative relationships with suppliers (and other stakeholders) can help create a robust supply chain. And a corporate culture of flexibility—with distributed decision making and communications at all levels—can create a resilient enterprise. Sheffi provides tools for companies to reduce the vulnerability of the supply chain they live in. And along the way he tells the stories of dozens of enterprises, large and small, including Toyota, Nokia, General Motors, Zara, Land Rover, Chiquita, Aisin Seiki, Southwest Airlines, UPS, Johnson and Johnson, Intel,, the U.S. Navy, and others, from across the globe. Their successes, failures, preparations, and methods provide a rich set of lessons in preparing for and managing disruptions.

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    Bibliographic Info

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    This book is provided by The MIT Press in its series MIT Press Books with number 0262693496 and published in 2005.

    Volume: 1
    Edition: 1
    ISBN: 0-262-69349-6
    Handle: RePEc:mtp:titles:0262693496

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    Related research

    Keywords: resilient enterprises; supply chains; corporate culture; competitive advantage;

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    Cited by:
    1. Johanna Ludvigsen & Ronny Klæboe, 2014. "Extreme weather impacts on freight railways in Europe," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 70(1), pages 767-787, January.
    2. Anjali Saxena & Nitin Seth, 2012. "Supply chain risk and security management: an interpretive structural modelling approach," International Journal of Logistics Economics and Globalisation, Inderscience Enterprises Ltd, vol. 4(1/2), pages 117-132.
    3. Lu, Mengshi & Huang, Simin & Shen, Zuo-Jun Max, 2011. "Product substitution and dual sourcing under random supply failures," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1251-1265, September.
    4. Rutger Graaf & Nick Giesen & Frans Ven, 2009. "Alternative water management options to reduce vulnerability for climate change in the Netherlands," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 51(3), pages 407-422, December.
    5. Dutz, Mark A., 2013. "Resource reallocation and innovation : converting enterprise risks into opportunities," Policy Research Working Paper Series 6534, The World Bank.
    6. Shao, Xiao-Feng, 2012. "Demand-side reactive strategies for supply disruptions in a multiple-product system," International Journal of Production Economics, Elsevier, vol. 136(1), pages 241-252.
    7. Hishamuddin, Hawa & Sarker, Ruhul A. & Essam, Daryl, 2014. "A recovery mechanism for a two echelon supply chain system under supply disruption," Economic Modelling, Elsevier, vol. 38(C), pages 555-563.
    8. Skaggs, Rhonda & Boecker, Andreas & Crawford, Terry, 2008. "Evolving Standards and Industries in an Era of Market Integration: Opportunities and Obstacles within the North American Livestock Complex," 2008 NAAMIC Workshop V: New Generation of NAFTA Standards 163908, North American Agrifood Market Integration Consortium (NAAMIC).
    9. Klibi, Walid & Martel, Alain, 2012. "Scenario-based Supply Chain Network risk modeling," European Journal of Operational Research, Elsevier, vol. 223(3), pages 644-658.
    10. Revilla, Elena & Sáenz, María Jesús, 2014. "Supply chain disruption management: Global convergence vs national specificity," Journal of Business Research, Elsevier, vol. 67(6), pages 1123-1135.
    11. Barker, Kash & Santos, Joost R., 2010. "Measuring the efficacy of inventory with a dynamic input-output model," International Journal of Production Economics, Elsevier, vol. 126(1), pages 130-143, July.
    12. Dowty, Rachel A. & Wallace, William A., 2010. "Implications of organizational culture for supply chain disruption and restoration," International Journal of Production Economics, Elsevier, vol. 126(1), pages 57-65, July.
    13. Hishamuddin, H. & Sarker, R.A. & Essam, D., 2012. "A disruption recovery model for a single stage production-inventory system," European Journal of Operational Research, Elsevier, vol. 222(3), pages 464-473.
    14. Wang, Weijia & Plante, Robert D. & Tang, Jen, 2013. "Minimum cost allocation of quality improvement targets under supplier process disruption," European Journal of Operational Research, Elsevier, vol. 228(2), pages 388-396.
    15. Klibi, Walid & Martel, Alain, 2012. "Modeling approaches for the design of resilient supply networks under disruptions," International Journal of Production Economics, Elsevier, vol. 135(2), pages 882-898.
    16. Egan, M. Jude, 2010. "Private goods and services contracts: Increased emergency response capacity or increased vulnerability?," International Journal of Production Economics, Elsevier, vol. 126(1), pages 46-56, July.
    17. Wagner, Stephan M. & Neshat, Nikrouz, 2010. "Assessing the vulnerability of supply chains using graph theory," International Journal of Production Economics, Elsevier, vol. 126(1), pages 121-129, July.
    18. Dias, Clarissa Freitas & Vaughn, Michael S., 2006. "Bureaucracy, managerial disorganization, and administrative breakdown in criminal justice agencies," Journal of Criminal Justice, Elsevier, vol. 34(5), pages 543-555.


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