Preparing for the big one [supply chain management]

The range of potential high impact-low probability (HILP) disruptions to the operations of retailers, manufacturers, transportation carriers, and all others involved in the supply chains of goods and services is infinite. They can be classified as follows: random phenomena, accidents of all kinds, and international disruptions. Each type of disruptions should be anticipated and defended against differently. For companies, resilience is the measure of their ability to, and speed at which they can, return to their normal performance level - production, services and fill rate - after an HILP disruption. Building a resilient supply chain can help a company survive in the face of a calamitous disruption.