Integrating Supply Chain and Facility Risk Analyses For Improved Business Decisions

Abstract

Typically, business supply chain risks are managed separately from fixed facility risks. However, where significant fixed site risk reduction can negatively impact a supply chain, a study that addresses both the supply chain and fixed facility risk can be done to help the business integrate all available information into the decision process. To assure a comprehensive risk analysis, a supply chain risk study should include rare/high consequence events, as does the fixed site study. A case study is presented for a facility that imports, stores, and consumes large volumes of a highly toxic material, and is located in a densely populated area. The methods used to analyze risks and identify risk reduction opportunities for the facility and the supply chain are described. The business team integrates the results of this study with other information to make better decisions.