Supply chain resilience for global operations (2) : a re-evaluation of performance benchmarking (transportation)

Abstract

Under the backdrop of recent trade wars and COVID-19 pandemic, globalised companies have to be aware of their supply chain vulnerability to major disruptions. For example, during “lock-downs” in affected regions, companies begin to re-assess agility of their production capacities, the ability to respond to shifting customer demand quickly to create new or custom products, securing of transport capacities, evaluating alternative inbound/outbound transport or even succession plans for key executive positions. At the strategic level, corporations have to conduct global re-planning scenarios based upon decisions such as facility locations, political considerations, financial trends, and regulatory environments. This project aims to re-evaluate the existing benchmarking practices for measuring supply chain performance, specifically in Transportation, by drawing experience and lessons learnt from the COVID-19 pandemic and geopolitical events. Firstly, critical literature review on current benchmarking practices were conducted, to assess their relevance in the face of future supply chain disruptions. Interviews with industry professionals are also conducted to gain insights into the current benchmarks and understand how they can be improved for supply chain resilience. The current benchmarking practices are then re-evaluated, and it was found that supply chain visibility is a major element that current benchmarking practices do not embrace. A recommendation of metrics and practices are then made to address this lacking element. Finally, a recommendation of a supply chain resilience framework, namely Supply Chain Transportation Resilience Checklist (SCTRC), will then be suggested. This framework is designed to help companies assess their supply chain resilience, with reference from the SCOR Model and Best Practices Checklist by AberdeenGroup.