Evaluation of Supply Chain Resilience: Development of RARE Framework

Intensive use of technology makes a system becomes so complex that risks may arise. These risks must be anticipated properly. Risk management has been practiced to handle impact caused by the risks. In its development, risk management does not only focus on mitigation actions but also try to make the system more resilient to the risks. Resilience is defined as a system ability for sustaining or restoring the system when a risk appears. System resilience now becomes an important issue since not all risks can be avoided, as those of natural disaster risks. On the other hand, studies on the system resilience level have not been done much. Therefore, this paper tries to study the Risk and Resilience Evaluation (RARE) involved in the supply chain system. This study begins with supply chain risk identification, evaluation, and selection. The selected risks then be evaluated further to know the supply chain system resilience over the risk. Literature review is used as the basis for determining the key factors affecting the level of the system resilience. These factors are then projected into the supply chain system resilience consisting of suppliers, internal companies, distributors, retailer, and customer. The research shows that the dominant factors affecting the system resilience level is the speed of the system to detect risks arise, the speed to response the problems, and the speed of the system in recovering the failure.