Business Impact Analysis of supply chain disruptions

Proceedings of The 8th international conference on Management, Economics and Humanities

Year: 2018

DOI: https://www.doi.org/10.33422/8icmeh.2018.12.48

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Business Impact Analysis of supply chain disruptions

G. Wieteska

 

ABSTRACT: 

This paper is devoted to the issue of business continuity management. Today, in a turbulent global environment, companies are exposed to an increasing number of internal and external uncertainties. These adverse events disturb processes and bring negative consequences. In the context of anticipating, responding to and restoring from the crisis situations, it is vital to perform a supply chain business impact analysis. The conducted research was designed twofold. First, a Systematic Literature Review on Business Impact Analysis was conducted. Here, the desk research method was used. Here, the desk research method was used. It revealed, that the supply chain BIA is a very rare subject of research. During the second stage, a CATI survey was performed among 202 of the largest manufacturing companies operating in Poland. The results supported the answering of seven research questions that concerned two main BIA parameters, which are ‘disruption impact’ and ‘disruption time’. The study analysed the most serious disturbances of eleven supply chain processes. Many interesting conclusions have been formulated. The highest negative triple bottom line (TBL) impact of supply chain disruptions regard the financial losses. The disruptions affect the time performance indicators the most. A process that is vulnerable to the largest TBL consequences is ‘supply logistics’, whereas ‘purchasing and supplier relationship management’ suffers from the longest interruptions. BIA needs to include various consequences including the reputational one.

Keywords: Business Impact Analysis, continuity management, supply chain processes, disruption, KPI.