The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage Review

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The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage ReviewIn this book, MIT Professor Sheffi analyzes high-impact business disruptions, their causes and consequences. Using real life examples, he illustrates how even a small disruption in one part of a tight supply chain can result in major problems elsewhere. He discusses several risk assessment methodologies for estimating probabilities and severity of various types of losses (natural, accidental, and intentional). A brief introduction to current supply chain theory and practice follows.
The heart of this book is about specific strategies that a number of enterprises are using to reduce their vulnerability to disruptions and to build flexibility into the supply chain. Topics include early warning systems, collaboration, redundancy, product redesign, customer relations management and cultural change. Professor Sheffi illustrates how various companies have innovated and implemented these strategies. He argues that supply chain integrity and security should be as integral to enterprise management as is quality or safety.
Supply chain management innovations such as outsourcing, just-in-time delivery and supply base consolidation require corporate risk managers to develop new loss control strategies and competencies. Business competition is now based on the capabilities of the entire supply chain, not just an individual company. Risk managers must carefully look up and down the entire length of the supply chain to identify vulnerabilities and to make sure that appropriate risk controls and/or risk transfer and financing methods (e.g., contingent business interruption insurance) are in place.
The resilient enterprise recognizes that its supply chain is only as strong as its weakest link, and prepares accordingly. In today's complex business environment, disruptions somewhere along the supply chain are all but inevitable. Preparation and flexibility not only improve the odds of an enterprise's survival, but may also become a decisive competitive advantage when disruptions adversely affect rival enterprises.
As a 30+ year practitioner of corporate risk management and insurance, I recommend Yossi Sheffi's The Resilient Enterprise to all risk managers striving to integrate sound risk management theory and practice into their organization's standard operating procedures.
The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage Overview

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