Supply Chain Resilience: ADDAPT Framework

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Questions and Answers

What is the primary focus of supply management functions in well-run companies?

Expanding product lines

Reacting to operational problems quickly (correct)

Increasing market share

Lowering production costs

Which technological capability is critical for supply chain management?

Detecting changing consumer demand and delivery patterns in real time (correct)

Automating manufacturing processes

Enhancing marketing strategies through data analytics

Predicting trends based on historical sales data

Which of the following is NOT one of the capabilities of the ADDAPT framework?

Track

Assess (correct)

Protect

Diagnose

How can companies enhance their ability to manage supply disruptions?

Create and test emergency playbooks Signup and view all the answers

What is one of the common reasons organizations overlook their vulnerability to supply disruptions?

Forgetting past experiences with known triggers Signup and view all the answers

What should leaders ensure regarding the responsibilities of the supply chain management function?

It is owned by a senior executive Signup and view all the answers

What does the 'Track' capability in the ADDAPT framework emphasize?

Continuously updating leading indicators of supply disruptions Signup and view all the answers

What is essential for companies to collaborate on to manage supply disruption risks?

Regular discussions about supply disruption risks Signup and view all the answers

Which practice aims at efficiently marshaling resources during a supply disruption?

Activate Signup and view all the answers

Why is it important to create prioritized checklists in emergency playbooks?

To facilitate quick decision-making during supply interruptions Signup and view all the answers

What is the primary focus of the ADDAPT framework?

Examining both known and unknown but knowable risks Signup and view all the answers

Which capability of the ADDAPT framework helps organizations foresee potential disruptions?

Anticipate Signup and view all the answers

In which way does the ADDAPT framework suggest organizations should handle unknown risks?

Describing and transitioning them into knowable threats Signup and view all the answers

What is a consequence of delayed deliveries in a supply chain according to the content?

Shutdown of manufacturing due to lack of parts Signup and view all the answers

Which action is part of the Detect capability in the ADDAPT framework?

Establishing trip wires to monitor disruptions Signup and view all the answers

How does the ADDAPT framework view the number of potential supply disruption risks?

Infinitely large with known and unknown risks Signup and view all the answers

What is the benefit of continuously gathering information from various sources in the Anticipate capability?

To enhance awareness and preparedness for disruptions Signup and view all the answers

Which of the following is NOT a key action associated with the Detect capability?

Implementing strict hiring policies Signup and view all the answers

Why is it important for organizations to engage with external experts, according to the ADDAPT framework?

To ask difficult and probing questions about risks Signup and view all the answers

What does the Diagnose capability prompt organizations to do?

Investigate and understand supply disruptions Signup and view all the answers

What is one of the challenges organizations face with the Anticipate capability?

Forgetting past experiences with known triggers Signup and view all the answers

What is the objective of regular drills and mock exercises in the context of the ADDAPT framework?

To prepare employees for potential disruption scenarios Signup and view all the answers

What framework is used to help companies respond to supply disruptions?

ADDAPT framework Signup and view all the answers

What role does communication play in the Detect capability?

It facilitates understanding and response to deviations Signup and view all the answers

Which of the following capabilities is NOT part of the ADDAPT framework?

Implement strategies for Signup and view all the answers

What significant event revealed the weaknesses in Loblaw's supply disruption management?

The COVID-19 pandemic Signup and view all the answers

Which of the following actions can help organizations limit losses during supply disruptions?

Implementing the six ADDAPT capabilities Signup and view all the answers

What was Loblaw's initial reaction to the COVID-19 situation in January 2020?

To view it primarily as a health concern Signup and view all the answers

Which capability did Loblaw lack when managing the supply disruptions caused by COVID-19?

Effective communication with vendors Signup and view all the answers

What was one outcome of Loblaw's reliance on its demand management system during the pandemic?

It failed to alert managers to transportation issues. Signup and view all the answers

What action did Loblaw's task force frequently initiate regarding vendors during the supply chain disruption?

Engage in more frequent and open dialogue Signup and view all the answers

According to the ADDAPT framework, what does the 'diagnose' capability involve?

Understanding the causes of supply disruptions Signup and view all the answers

How did Loblaw handle the shortage of products during the pandemic?

By maintaining existing sources and rationing Signup and view all the answers

What was a significant limitation of Loblaw's emergency plans prior to COVID-19?

They mainly addressed local emergencies only. Signup and view all the answers

What contributed most to Loblaw's ability to manage during the pandemic?

Collaborative problem-solving among supply chain managers Signup and view all the answers

What was one of the results of the improvisation in Loblaw's response to the pandemic?

Time-consuming response formulation Signup and view all the answers

What did Loblaw's pandemic task force rely on for predicting product shortages?

Intuition based on historical data Signup and view all the answers

What percentage of organizations had an emergency response center in place for supply chains during a poll at the onset of the COVID-19 pandemic?

16% Signup and view all the answers

What does the ADDAPT framework help companies to do?

Understand the causes and effects of supply disruptions Signup and view all the answers

What was a critical aspect of the ADDAPT framework for companies facing disruptions?

Developing a playbook with detailed options Signup and view all the answers

Which company is used as a case study for developing supply chain resilience?

Loblaw Signup and view all the answers

What was the highest ambition of supply chain managers during the pandemic according to the poll?

To bolster risk management protocols and tools Signup and view all the answers

What is a crucial element for mitigating disruptions in the flow of goods?

Emergency response center Signup and view all the answers

Which of the following best describes the capabilities necessary for managing supply disruptions?

A combination of people, policies, processes, and technologies Signup and view all the answers

What do crisis-driven supply chain initiatives primarily focus on?

Protocols and tools Signup and view all the answers

Which aspect shall companies primarily manage to prevent future supply disruptions?

Unknown-but-knowable threats and their consequences Signup and view all the answers

What is the primary function of the Diagnose capability during a supply disruption?

To analyze and learn from the disruption for future prevention. Signup and view all the answers

Which of the following actions is NOT a key action under the Protect capability?

Provide immediate access to resources during a crisis. Signup and view all the answers

How does the Activate capability help companies during a crisis?

By expediting the restoration of goods flows. Signup and view all the answers

What is a critical mistake organizations try to avoid during a supply disruption according to the Diagnose capability?

Misguided interventions by focusing on irrelevant issues. Signup and view all the answers

Which fundamental aspect is essential for the effectiveness of the Track capability?

Real-time monitoring of supply chain data. Signup and view all the answers

What do companies need to ensure during the Diagnose capability to avoid reoccurrences of supply disruptions?

Holistic understanding of all supply issues. Signup and view all the answers

Which of the following best describes the focus of the Protect capability?

Preventing future supply disruptions through learning. Signup and view all the answers

What aspect of supply chain management is prioritized during the Activate capability?

Stabilizing and quickly restoring operations. Signup and view all the answers

What is one of the key responsibilities of the Track capability?

To define and monitor trip wires for early detection. Signup and view all the answers

What should companies prioritize immediately upon experiencing a supply disruption?

Stabilizing the situation and restoring flows. Signup and view all the answers

In the context of the Diagnose capability, what is meant by 'timely responses'?

Responses that are quick and relevant to the disruption. Signup and view all the answers

Which of the following is a benefit of the Track capability in managing supply disruptions?

It verifies the effectiveness of activated solutions. Signup and view all the answers

What is necessary for organizations to avoid focusing on irrelevant issues during diagnosis?

Critical thinking and data analysis skills. Signup and view all the answers

What role does engaging external stakeholders play in risk identification during a supply disruption?

It is crucial for developing comprehensive descriptions of disruptions. Signup and view all the answers

Study Notes

Supply Chain Resilience: The ADDAPT Framework

Supply Chain Disruptions: The COVID-19 pandemic highlighted the vulnerability of supply chains, with only 16% of organizations having emergency response centers.
ADDAPT Framework: A framework for managing supply disruptions, encompassing six critical capabilities: anticipate, detect, diagnose, activate, protect, and track.
Anticipate: Leveraging past disruptions and future-foresight through simulations, drills, and stakeholder input (e.g., employee concerns, scenario planning).
- Actions: Encourage triggers sharing, formalize procedures, establish learning labs, conduct drills, and hold regular retreats.
Detect: Setting up alerts (trip wires) for deviations in product flows, prioritizing high-risk products and flows to aid rapid responses.
- Actions: Encourage trigger reporting, inform stakeholders, connect alerts to communication protocols, formalize communication systems, and create accessible dashboards.
Diagnose: Analyzing data from supply disruptions to isolate the triggering risks and develop timely and efficient solutions.
- Actions: Provide support for problem-solving, engage external stakeholders, and include external opinions.
Activate: Mobilizing resources to implement solutions under urgency.
- Actions: Track location of materials/personnel/info., provide access and authorization, deploy standby teams, formalize relationships with alternative suppliers, and document and share plans.
Protect: Preventing future disruptions through learning from past experiences.
- Actions: Review and adapt solutions from recent disruptions, update processes, share plans, and conduct war games.
Track: Continuously monitoring leading indicators of disruptions.
- Actions: Invest in personnel and tracking systems, provide decision-support dashboards, define and monitor leading indicators, and map baseline indicators.

Loblaw's Experience with COVID-19

Loblaw's Situation: Canada's largest supermarket chain, with over 2,400 stores and 20 distribution centers.
Initial Responses: COVID-19 recognized as a health concern initially; later recognized as a supply chain disruption.
Challenges: Lack of foresight for widespread disruptions like pandemics or natural disasters; emergency plans not covering broader risks, difficulty coordinating and activating solutions across logistics network, and no playbook for restoring product flows.
Response during Disruption: Assembled a task force, used demand management systems for prediction, relied on past experience for diagnostics, and implemented adjustments, including alternative sources, inventory triage, and reduced choices to maintain volume.
Lessons Learned: Systems for detecting and monitoring external events & identifying alternative carriers and suppliers, and formalized communication with vendors are vital.

Practical Implications

Strategic Function: Supply chain management should be a strategic, senior-level function, supported by advanced technology and data analysis.
Proactiveness: Organizations need to predict and proactively respond to supply disruptions rather than simply reacting.
Collaboration: Supply chains should work together to address emerging risks and anticipate disruptions beyond individual companies' oversight.
Emergency Plans: Companies must develop and test plans for dealing with various supply disruption scenarios, using prioritized checklists and readily available alternative sources for critical materials and expertise.

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Description

Explore the ADDAPT framework designed to enhance supply chain resilience in the face of disruptions like the COVID-19 pandemic. Learn about the six essential capabilities: anticipate, detect, diagnose, activate, protect, and track, that organizations should implement to effectively manage supply chain challenges. This quiz will cover how to prepare for and respond to supply interruptions strategically.