Make Smarter Investments in Resilient Supply Chains
Many companies focus on mitigating the risk of supply chain disruptions. When one occurs, they take a boom-and-bust approach, investing in resilience, spending heavily in the immediate aftermath, and then doing little more until the next crisis. As an alternative, the authors propose a real options approach to resilience investing, which gives companies a way to make long-term, proactive decisions focused on maintaining supply chain capabilities no matter the crisis.