Supply Chain Disruptions: Understanding Hidden Shocks and Network Links
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The signal
CEPR research examines how supply chain disruptions propagate through interconnected networks of suppliers and customers. The analysis reveals that shocks in one part of the supply chain can have cascading effects across regions and industries through hidden network links, highlighting the importance of understanding systemic vulnerabilities and exposure points that may not be immediately visible to individual firms.
What This Means for Your Supply Chain
What if a critical supplier experiences a major disruption?
Model the propagation of a supplier disruption through your customer base and upstream network, accounting for alternative sourcing options and inventory buffers.
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