ABSTRACT
This chapter addresses three issues that are critical in managing supply chain disruptions. It provides a summary of some of the results from the research on the long-term financial consequences of supply chain disruptions. One of the reasons why many companies are not adequately prepared for assessing and addressing supply chain disruptions is that they do not have a good understanding of the magnitude and persistence of the negative consequences of disruptions on financial performance. Whilst anecdotes make for splashy headlines, they do not provide the objective evidence that many senior executives are looking for so that they can better understand the financial consequences of supply chain disruptions. Second, the chapter offers insights into the factors that can increase the chances of disruptions to guide managers as they assess this risk. Finally, it highlights some of the best strategies and practices in managing disruptions using case studies from Wal-Mart, Mattel and Boeing.
