Supply chain resilience: The possible application of triple bottom line costing to supply chain risk management.
Savage, Christopher J.
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Within the context of the supply chain industry, the long term value of an organization equates to the fiscal metrics used in the classical definition of enterprise modified by the sustainability (or capacity to endure) of the activity. Logistics practitioners and academics design logistics solutions with varying degrees of resilience and robustness in response to both internal and external forces. Supply chain disruption events test the resultant operations. A 2010 survey recorded 45% of the respondents as experiencing supply chain disruption within the past year and of these more than 50% incurred a loss of over US$1m (Banerjai et al, 2012). The industry is also experiencing more Black Swan incidents (Taleb, 2008) i.e. events that are a surprise to us and have a major impact on life, organizational value and sustainability. The focus of this paper is on sustainability, how it should be gauged and how might supply chain resilience and triple bottom line costing (TBLC) influence the valuing of the organization. The underpinning research is based on previous work by the authors; it applies the principles proposed by Průša and Savage (2007) to the findings from a three round Delphic study (Gibson et al, 2011). The output of this has been examined in the light of other relevant literature to draw conclusions on the practical importance of supply chain resilience and the potential role of triple bottom line costing.