Empirical evaluation of the delivery risk of extended supply chains

摘要

The rise in global sourcing has led to extended supply chains. Extended supply chains generally have more mode changes, border crossings, rail classification yards, port congestion and so forth, that all lead to more delivery disruption risk. To test this assertion, we perform an empirical assessment of the inbound supply chain disruption risk at a major manufacturer that imports components from over three dozen different countries. Although delivery disruption risk can be mitigated with effort, we observe that delivery disruption risk increases with distance. Based on industrial data, we quantify the increase in delivery disruption with international versus domestic suppliers and intercontinental versus continental suppliers.