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1、SUPPLYCHAINVULNERABILITYExecutiveReportOnBehalfof:DepartmentforTransport,LocalGovernmentandtheRegionsHomeOfficeDepartmentofTradeandIndustryJanuary2002SUPPLYCHAINVULNERABILITYIntroductionModernsupplychainsareverycomplex,withmanyparallelphysicalandinformationflows
2、occurringinordertoensurethatproductsaredeliveredintherightquantities,totherightplaceinacosteffectivemanner.Infact,supplynetworksmaybeamoreaccuratetermthansupplychains.Inthisbrochurethetermssupplychainsandsupplynetworksareusedwiththesamemeaning.Theshifttowardslea
3、nersupplynetworksduringrecentyearshasresultedinthesenetworksbecomingmorevulnerable.Inparticular,thereoftentendstobeverylittleinventoryinthesystemto“buffer”anyinterruptionsinsupplyand,therefore,anydisruptionscanhavearapidimpactonthesupplynetwork.Thesedisruptionsc
4、anarisefromanumberofsources,forexample:·naturaldisasters(e.g.theKobeearthquake,whichaffectedsupplynetworksacrosstheglobe,or,morerecently,footandmouthdisease,whichhasaffectedthelivestockhaulageindustry,thetouristindustry,etc);th·terroristincidents(e.g.eventsinthe
5、USAon11September2001)·industrialordirectaction(e.g.thefuelpriceprotestofSeptember2000,whichveryrapidlyimpactedonalmosteverysupplynetworkintheU.K.);·accidents(e.g.afireinacomponentsuppliercanhavesuchaseriousimpactonmanufacturethattheyareforcedtoshutdownoperations
6、,suchasToyotain1997–duetoproblemsatitssupplierofbrake-pressureproportioningvalves);·operationaldifficulties(e.g.productionorsupplyproblemsatonesuppliercanimpacteveryorganisationinthesupplynetwork).Owingtothecloseinterrelationshipsbetweenmanysupplynetworks,theimp
7、actofsuchdisruptionscanbefarreaching.Companieshavebeenawareoftheneedfordisasterrecoveryandemergencyplanningforsomeconsiderabletime,particularlyinareassuchasinformationtechnologyandproductionplants.Businessriskisnowreceivingincreasingattentionbycompanies(andtheir
8、insurers)particularlyasregardsthelossofmarketshareandthetime,andcost,ofre-enteringamarketafterasignificantdisruptiontosupply.Therobustnessofsupplynetworksisthusrecogn
