The resilient enterprise : overcoming vulnerability for competitive advantage ; [with a new preface for the paperback edition

What Happens When Fire Strikes The Manufacturing Plant Of The Sole Supplier For The Brake Pressure Value Used In Every Toyota? When An Earthquake In Taiwan Shuts Down Chip Manufacturers For Deli And Apple? 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. 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 That Investments In Resilience And Flexibility Not Only Reduce Risk But Create A Competitive Advantage In The Increasingly Volatile Marketplace.--jacket. Preface -- Acknowledgments -- [pt]. 1. When Things Go Wrong : Disruptions And Vulnerability -- 1. Big Lessons From Small Disruptions -- 2. Understanding Vulnerability -- 3. Anticipating Disruptions And Assessing Their Likelihood -- 4. Effects Of Disruptions -- [pt]. 2. Supply Chain Management -- A Primer -- 5. Basic Supply Chain Management -- 6. Demand-responsive Supply Chains -- [pt]. 3. Reducing Vulnerability -- 7. Reducing The Likelihood Of Intentional Disruptions -- 8. Collaboration For Security -- 9. Detecting Disruptions -- 10. Resilience Through Redundancy -- [pt]. 4. Building In Flexibility -- 11. Flexibility Through Interchangeability -- 12. Postponement For Flexibility -- 13. Strategies For Flexible Supply -- 14. Customer Relations Management -- 15. Building A Culture Of Flexibility -- [pt]. 5. Resilience For Competitive Advantage -- 16. Moving Ahead -- Notes -- Index. Yossi Sheffi. Includes Bibliographical References (p. [287]-315) And Index. Stories from Nokia, Dell, UPS, Toyota, and other companies show how firms can reduce their vulnerability to high-impact distributions, from earthquakes to strikes, from SARS to terrorism, and use them for competitive advantage.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, Amazon.com, 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. Stories from Nokia, Dell, UPS, Toyota, and other companies show how firms can reduce their vulnerability to high-impact distributions, from earthquakes to strikes, from SARS to terrorism, and use them for competitive advantage. 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 itand 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 culturebalancing 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 securityreducing the likelihood of a disruptionwith 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 resiliencethe ability to bounce back from disruptions and disastersby 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 flexibilitywith distributed decision making and communications at all levelscan 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, Amazon.com, 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.

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, Amazon.com, 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.Additional material available at www.TheResilientEnterprise.com

Contents 8 Preface 10 Acknowledgments 12 I When Things Go Wrong 16 1 Big Lessons from Small Disruptions 18 2 Understanding Vulnerability 32 3 Anticipating Disruptions and Assessing Their Likelihood 50 4 Effects of Disruptions 72 II Supply Chain Management—A Primer 90 5 Basic Supply Chain Management 92 6 Demand-Responsive Supply Chains 108 III Reducing Vulnerability 128 7 Reducing the Likelihood of Intentional Disruptions 130 8 Collaboration for Security 152 9 Detecting Disruptions 170 10 Resilience through Redundancy 186 IV Building in Flexibility 196 11 Flexibility through Interchangeability 198 12 Postponement for Flexibility 210 13 Strategies for Flexible Supply 224 14 Customer Relations Management 240 15 Building a Culture of Flexibility 258 V Resilience for Competitive Advantage 282 16 Moving Ahead 284 Notes 302 Index 332 On Friday night, March 17, 2000, a line of thunderstorms rolled through the desert city of Albuquerque, New Mexico.