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Challenges in the Era of Globalization - iaabd

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Proceed<strong>in</strong>gs <strong>of</strong> <strong>the</strong> 12th Annual Conference © 2011 IAABD<br />

<strong>of</strong> supply cha<strong>in</strong> disruption to <strong>the</strong> success <strong>of</strong> <strong>the</strong> electoral process. Disruptions as a result <strong>of</strong> supply cha<strong>in</strong><br />

bl<strong>in</strong>d spots or judgmental mistakes can impair effective flows <strong>of</strong> material supplies and <strong>in</strong>formation<br />

imperative for an organization’s nimbleness to changes <strong>in</strong> environmental conditions and performance.<br />

Supply Cha<strong>in</strong> Vulnerability Assessment<br />

Vulnerability is a function <strong>of</strong> probability and consequence. Probability can be reduced by way <strong>of</strong> security<br />

and early warn<strong>in</strong>g systems, while consequences can be reduced through build<strong>in</strong>g resilience (i.e., <strong>the</strong><br />

ability to rega<strong>in</strong> (or recreate) prior capability; requir<strong>in</strong>g advance plann<strong>in</strong>g, additional capabilities/capacity;<br />

and design<strong>in</strong>g systems for resilience. A risk assessment identifies and evaluates risks based on various<br />

factors, <strong>in</strong>clud<strong>in</strong>g capability and <strong>the</strong> potential effect <strong>of</strong> a predictable or an unpredictable event. Because<br />

organization such as INEC <strong>of</strong>ten do not know if it has identified every risk and/or have actionable<br />

<strong>in</strong>formation regard<strong>in</strong>g <strong>the</strong> identified risks, it must <strong>the</strong>refore depend on vulnerability and criticality<br />

assessment approach. Vulnerability and criticality assessments are important <strong>in</strong> proactive risk<br />

management. A supply cha<strong>in</strong> vulnerability assessment is a process that identifies bl<strong>in</strong>d spots. A supply<br />

cha<strong>in</strong> logistics vulnerability assessment is a process that systematically identifies and evaluates an<br />

organization’s supply cha<strong>in</strong> logistics exposure to bl<strong>in</strong>d spots or risks.<br />

Supply cha<strong>in</strong> vulnerability assessment is very crucial because it provides a basis for prioritiz<strong>in</strong>g which<br />

supply cha<strong>in</strong> logistics processes or assets require mitigation. Supply cha<strong>in</strong> logistics vulnerability<br />

assessment is reported <strong>in</strong> Figure 1. The follow<strong>in</strong>g identified bl<strong>in</strong>d spots are not ranked accord<strong>in</strong>g to <strong>the</strong><br />

order <strong>of</strong> importance: 1 = supplier failure/reliability; 2 = default <strong>of</strong> suppliers; 3 = logistics failures; 4 =<br />

commodity cost volatility; 5 = equipment breakdowns; 6 = force majeure; 7 = accidents; 8 = social<br />

political actions; 9 = lack <strong>of</strong> trust with partners; 10 = electric power shortage and outage; 11 =<br />

<strong>in</strong>formation delays, scarcity, shar<strong>in</strong>g; 12 = <strong>in</strong>frastructure breakdown; 13 = contract failure; degree <strong>of</strong> 14 =<br />

control over logistics operations; 15 = weaknesses <strong>in</strong> <strong>the</strong> national, regional, and local <strong>in</strong>frastructure; 16 =<br />

supplier product/material quality failures; 17 = supply cha<strong>in</strong> logistics security breaches; 18 = ris<strong>in</strong>g<br />

energy costs; 19 = ris<strong>in</strong>g transportation costs; and 20 = IT risks, loom large as potential bl<strong>in</strong>d spots for<br />

INEC, suppliers, logistics providers, and customers or voters to susta<strong>in</strong><strong>in</strong>g a consistent state <strong>of</strong> operations<br />

cont<strong>in</strong>uity.<br />

High<br />

Probability <strong>of</strong> Disruption<br />

Low<br />

Vulnerability (H, L) Vulnerability (H, H)<br />

11<br />

19<br />

17<br />

Vulnerability (L, L)<br />

13<br />

18<br />

16 1 2<br />

20<br />

Low Severity (Consequences) <strong>of</strong> Disruption High<br />

Figure 1. Supply Cha<strong>in</strong> Vulnerability Assessment Framework<br />

4<br />

3<br />

14<br />

6<br />

8<br />

Vulnerability (L, H)<br />

10<br />

9<br />

7<br />

578

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