Detect, Communicate, Collaborate: An agile digital network to manage disruptions

Abstract

This project sought to address critical gaps in the extended supply chain network of the sponsor company by evaluating the efficacy of establishing a communication protocol with upstream suppliers to detect and mitigate supply chain disruptions. Leveraging an agent-based simulation model, the study examined what supply chain elements should be activated, and what internal and external stakeholders should be tracked to facilitate effective communication during disruption. The simulation results demonstrate the model's robustness in various scenarios, achieving a significant reduction in the detection lead time of disruptions ranging from 12% to 53%. By implementing the Supply Chain Digital Risk Console, Sponsor Company can benefit from early detection of disruption events and timely communication with appropriate stakeholders, resulting in faster responses to potential disruptions, a reduction in the Value at Risk, and an improvement in the supplier On Time In Full (OTIF) order fulfillment rate, thereby improving company’s overall supply chain performance and resilience.