Supply chain disruptions of the magnitude of the Japan tsunami are, fortunately, not frequent. On the other hand, breakdowns resulting from labor and political unrest, infrastructure congestion, as well as other stoppages caused by floods, fire, etc. are, unfortunately, more common. How can supply chain managers measure the dependability of their vendors on a continued basis? What key performance indicators associated with business continuity do you recommend are tracked periodically? How can these metric be used to identify actions that lead to exposure reduction?
Tip: Consider establishing a color code standard that places a vendor in red, orange, or yellow status when the risk of disruption exceeds defined levels.