"The COVID-19 pandemic exposed considerable weaknesses, resulting in severe disruptions in supply chains around the globe, shedding light on the need for intelligent supply chains that prioritize transparency, anticipate new risks and enable faster decision-making," said
Leveraging Accenture's extensive expertise in supply chain, operations and analytics, and
The test is designed to be scalable and adaptable to changing market conditions and customer expectations as supply chains continue to evolve. Global food company, Sigma, through its European subsidiary Campofrio, is among the companies working with Accenture and
NEWS: New #supplychain resilience stress test from @Accenture and @MIT will provide unprecedented visibility into where and how supply chains will be impacted during a major disruption.
"As a company with a wide international footprint, we need to ensure an uninterrupted supply of products to our customers, no matter what disruptions occur. Managing the impact of COVID-19 required high effort on our side, and in the process, we uncovered several weaknesses in the supply chain we wished we had identified more proactively before," said
The stress test begins with the creation of a "digital twin" of an organization's supply chain. This enables the subsequent modeling of various combinations of scenarios and impact that would significantly disrupt the organization's ability to serve customers, shareholders, employees, and society. Such scenarios could include sudden spikes or drops in demand, the shutdown of a major supplier or facility, scarcity of a critical raw material, or disruption of a key port. The stress test can identify both the time it would take for a particular node in the supply chain to be restored to full functionality after a disruption (i.e., "time to recover") and the maximum duration the supply chain can match supply with demand after a disruption (i.e., "time to survive"). This approach to supply chain risk management has been introduced and discussed by MIT Professor
"There is a critical need for a global stress test standard to help prevent shortages of vital products and supplies from happening when the next disaster strikes," said Simchi-Levi, who has published extensively on the need for consistent approaches for identifying and mitigating supply chain risks (see We Need a Stress Test for Critical Supply Chains, and Identifying Risks and Mitigating Disruptions in the Automotive Supply Chain). "The test will allow companies to understand the resiliency of their supply chains, recognize weak links and act quickly to balance the impact of unprecedented events on customers, operations and finances."
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About the
Our methods have been implemented by a large number of companies across a variety of industries such as Airlines, Insurance, Manufacturing, Retail, and Finance. Visit the Lab at https://dsl.mit.edu/.
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