Beyond the Horizon of Supply Chain Security Performance Measurement: An Introduction to Supply Chain Security Performance Measurement

Beyond the Horizon of Supply Chain Security Performance Measurement: An Introduction to Supply Chain Security Performance Measurement

Martina Vitteková (Czech Technical University in Prague, Czech Republic), Peter Vittek (Czech Technical University in Prague, Czech Republic), Ondřej Stejskal (Czech Technical University in Prague, Czech Republic), Slobodan Stojić (Czech Technical University in Prague, Czech Republic) and Tomáš Pezl (Czech Technical University in Prague, Czech Republic)
Copyright: © 2016 |Pages: 30
DOI: 10.4018/978-1-5225-0001-8.ch003
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Abstract

This chapter introduces a methodology on how to define a complex Security Index (SI) that brings the ability to measure the strength and the efficiency of the business entity´s security system. It describes how to provide an approach to the security performance measurement. In order to get SI it is necessary to develop a systematization of Security Index Determination Model (SIDM). SI describes Supply Chain Security Management (SCSM) performance. SCSM implements, facilitates and maintains Security barriers, which are formed by a confluence of properly chosen and efficiently implemented security measures. The presented methodology is based on the General Model developed by Gutiérrez and Hintsa that was expanded according to research needs. The expansion was based on adding the specified barriers for each of the Sub-categories stated in the previously mentioned General Model. For this purpose different security initiatives such as AEO, C-TPAT and TAPA were analysed. SIDM is based on Objectivized Methodology for Technical Systems Conditions Assessment developed by Lansky.
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Background

According to Pontén et al. (2008), “the ever-increasing importance of world trade and the development of the modern production system has made society vulnerable to disruptions in the supply of goods” (p. 7). The provision of Supply Chain Security has been a key logistic issue in the past decades. Supply chains as a large and complex systems have different parties involved. These different parties, as well as their activities or other processes create a convenient surrounding for different kinds of risk and make the eventual risk realisation easier. Such risk realizations in most cases lead to additional costs generated by actual damaged (Hendricks & Singhal, 2005). During the last decades, there were many studies which focused on the supply chain disruption and the negative impact on involved parties (Hendricks & Singhal, 2003; Blackhurst, Craighead, Elkins & Handfield, 2005; Kleindorfer & Saad, 2005). Many authors shared their view regarding risk classification. According to Speier an. el. (2011) two groups of the supply chain disruptions could be distinguished, intentional and unintentional ones. Trkman and McCormack (2009) distinguished endogenous and exogenous uncertainty, according to the uncertainty or risk source location (inside or outside of the Supply chain). Oke and Gopalakrishnan (2009) and Sheffi (2005) indicated that according to the available sources, supply chain risks can be divided into high-likelihood but with low impact or low likelihood but with high impact. According to Sheffi (2005) there are three types of discruptions: intentional attack, accidents and natural disasters.

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