Weak links in the supply chain: measuring fragility and sustainability

Abstract

PurposeThere is significant anecdotal evidence of increasing global supply chain fragility; and, for this reason, robustness and operational sustainability are of notable concern to senior executives. Though the issues are myriad, four factors dominate these concerns: increasing complexity of products, processes, and technologies, increasing structural complexity of supply chains, increasing diversity and global nature of business systems, and the environmental costs and impacts of extended supply chains. This paper aims to focus on these factors.Design/methodology/approachThis conceptual, theoretical paper differentiates corporate sustainability and operational robustness in terms of profitability and costs, then defines and develops internal, external, and uncontrollable fragility factors. A process that measures and integrates these factors is proposed for brainstorming and decision making. Additionally, methods to represent and compare alternatives, progress against internal or external targets, and industry goals or known competitor values are offered.FindingsThis study describes and demonstrates an easy‐to‐implement process to address the potentially disastrous consequences of supply chain fragility.Practical implicationsThis study offers both academicians and practitioners a model to research, assess, and identify the risks and costs of current levels of supply chain fragility and to weigh various solutions.Originality/valueUnfortunately, few research efforts define these issues or identify the associated risks. Further, little has been put forward to posit, model, and facilitate the practical decision process to address these factor relationships. To these ends, the paper proposes a “fragility index” to help supply chain managers assess sources and potential costs of fragility, sustainability, and the associated environmental stress in their supply chains.