Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

PLUS+ Customer Service Support


Customer service for all PLUS+ subscribers is available Mon-Fri, 9am-5pm Eastern time.

Email: [email protected]
Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)
Mail: PO Box 1496, Framingham MA 01701-1496, USA



You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

A Measured Approach to Resilience

Risk mitigation planning is often based on “gut feeling” or intuition.

By ·
By ·

Editor’s Note: Every year, 40 or so students in the MIT Center for Transportation & Logistics’ (MIT CTL) Master of Supply Chain Management (SCM) program complete one-year thesis research projects. The students are early-career business professionals from multiple countries with 2 to 10 years of experience in the industry. The research projects are sponsored by and carried out in collaboration with multinational corporations. Joint teams of company people, MIT SCM students, and MIT CTL faculty work on real-world problems chosen by sponsor companies. In this monthly series, we summarize a selection of the latest SCM research. The researchers for the project described below, Jaspar Siu and Santosh Stephen, developed a framework for assessing supply chain resiliency for their MIT Supply Chain Management Program master’s thesis. The project was supervised by James B. Rice Jr., Deputy Director, MIT CTL.  For more information on the program, visit http://scm.mit.edu/program.

Companies are generally aware of the importance of building resilience into their supply chains, but often find it difficult to actually quantify this increasingly important characteristic. As a result, risk mitigation planning is often based on “gut feeling” or intuition.

A framework for quantitatively assessing the resiliency of each supplier, facility, and location in the supply chain would provide a more systematic approach to resiliency. Such a framework would also give companies a better sense of where to focus their efforts to increase the resilience of their supply chains.

Hybrid approach

Some frameworks already exist, such as the Risk Exposure Index and Value-At-Risk. However, these focus on the loss of revenue incurred when disruptions hit and do not consider the resulting costs.

This research project took a hybrid approach to creating a framework or model that combines quantitative and qualitative of the sponsor company’s supply chain resiliency, and synthesizes these values into a balanced scorecard. The analysis included an in-depth evaluation of the impact of major and minor disruptions at each node in the supply chain on both the demand and supply sides.

For example, when a disruptive event such a tornado or supplier bankruptcy occurs, the productive capacity of the affected node(s) is lost and the company has to rely on downstream inventory for a certain time. When the inventory runs out the company faces sales losses until another supplier comes on stream, and the cost of this exposure was included in the model.

A measure of resilience

The model was used to assess supply chain resiliency for one commodity handled by the sponsor company. The expected business impacts for the company’s suppliers, facilities, and locations were aggregated, and the riskiest entities were identified. Finally, response curves were generated for key parameters such as downstream inventory, and the probability of each node being disrupted was calculated.

Using the Balanced Scorecard of Resiliency (BSR) model, a partial supply chain network resiliency assessment of one commodity was carried out successfully. Moreover, the BSR methodology can be refined by, for example, incorporating other analytical methods, and could yield other insights into the resiliency of the sponsor company’s supply chain.

More broadly, the model can be used to identify supply chain entities that bear the highest risk, evaluate the best mitigation options, and make a business case for investments in improving resiliency.

For further information on the thesis “A Supply Network Resiliency Assessment Framework” and the SCM program contact Dr. Bruce Arntzen, Executive Director, MIT Supply Chain Management Program, at: .(JavaScript must be enabled to view this email address).


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Article Topics

MIT · Risk · Supply Chain Management · All Topics
Latest Whitepaper
Plan. Manage. Recover. The power of risk management and resilience.
Savvy supply chain managers are putting risk management at the top of their to-do lists, planning for the recovery following inevitable disruptions.
Download Today!
From the September-October 2017
Additive manufacturing and 3D printing promise to simplify manufacturing, reduce inventories, and streamline operations. But, to determine when and how to apply additive manufacturing, organizations need a decision model that assesses it’s market strategy, supply chain performance, and complexity.
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
Risk and Resiliency 2.0:  Three New Keys to Managing Supply Chain Risk
It’s no longer enough to simply identify risk. In Risk Management 2.0, resiliency is the name of the game. This webinar explains how leading firms are broadening their view of risk; expanding it to include the impact on reputation and social responsibility; and elevating the corporate and strategic importance of risk management.
Register Today!
EDITORS' PICKS
Clean Cargo Working Group Launches Annual Emissions Factors
The Clean Cargo Working Group reached a major milestone of 50 corporate members
Data Management “Hype Cycle” Revealed in Gartner 2017 Report
The “Hype Cycle for Data Management,” developed by Gartner, Inc. is designed to assist CIOs,...

Tech Innovation Creates Some Jobs But Puts Others at Risk
The dramatic opening of the global economy, combined with the rapid pace of technological change,...
Deloitte Report Gives Atlanta High Marks for Supply Chain Connectivity
SupplyChainCity Analysis places the region among top seven North American cities