Introduction:

Reaching the sustainable competitive advantage is a long-term goal that companies aspire
to reach in light of the existing competition in the business market. It is imperative that
organizations in the era of globalization and contemporary openness shift towards new
organizational patterns.
The organizations should benefit from the shift from the traditional hierarchical
administrative structure to the building, democratic and participatory style that is
characterized by greater openness and flexibility. In light of these transformations, The
role of an innovative mindset in creating additional value for companies and gaining a
competitive edge is increasing. Where c0mpetitive advantage is the basic basis on which
the performance of organizations.
In order to be able to adapt in an evolving w0rld and to achieve l0ng-term strategic
objectives, c0mpanies must be distinctive from other organizati0ns operating in the same
field. This can only be achieved by the knowledge of competition rules by companies to
achieve the c0mpetitive advantage that makes them capable of outperf0rming competit0rs.
Because of the many challenges that organizati0ns face, such as gl0balization,
tough competiti0n, and the short life cycle of the product (the stage of research and
development, planning and design, before the production stage, in the production
stage, after the production stage and after the sale stage), they have to constantly
search for how to obtain a large market share and obtain a competitive position
Featured.
The administrative supply chain is concerned with optimizing the efficiency of operati0ns by
contr0lling the flow of inf0rmation, pr0ducts, services, and funds through any activity. It is also
connected to the implementation of new instruments, to the improvement or modification of
known processes, so that performance is efficiency and progress.
The world experienced a revolution in the use and implementation of various techn0logies at the
end of the last century and the beginning of the twenty-first century, the most imp0rtant of which
is informati0n techn0logy. In most organizati0ns, informati0n technol0gy plays a critical role.
There are many benefits of techn0logy that it enjoys, mainly reducing the rate of human
interference in r0utine tasks, improving the image of institutions and accelerating the process of
kn0wledge exchange via netw0rks, and the application of information technology makes
fundamental changes to the management of institutions in all its functions.

(A) The role of Information Technology integration in achieving Supply Chain Agility.

Any organizati0n's success or failure is primarily decided by its informati0n systems. This
significance derives from the fact that inf0rmation is used as a mechanism to organise and
help the administrative and decisi0n-making pr0cesses, it acts as a networking tool both
within the company and with the outside world. Organizati0ns must respond to the
opportunities and threats that arise as a result of global economic, social, political and
technological changes and developments in the surrounding environment. One of the
strategies of this confrontation is the integration of information technology, management,
and organization in order to achieve a competitive advantage.
One of the most significant factors that preceded gl0balisation and the new industrial
rev0lution is informati0n techn0logy, which began to appear dramatically in the late
nineteenth century. And this technology became gradually combined with the business
environment until it became an important and prerequisite for its prosperity.
This technology contributes to the development of science and its applications in
various fields and has a very important impact on organizations and working
societies. Information technology is searching for the best means to facilitate
information acquisition, exchange and making it available to applicants quickly
and effectively.
Information technology consists of computer components and software in addition to
communication networks and other necessary devices such as electronics to enable a
person to process, store, organize, send and retrieve information.
This concept has two main components, namely technology and information. This
concept is considered one of the modern concepts in the business environment and its
various sectors.
The information has evolved over time, as scientists refer to its development according to
the march of mankind into three main stages:
- The stage of the agricultural age.
- The stage of the industrial age.
- The stage of the information age.
In order to shed light on the concept of information technology, some related concepts
must be addressed.
1. Data: Data is a collection of events and facts that are recorded in organizations,
whether within their internal or external environment or from various other sources.
2. Information: Information is defined as data that has been subjected to processing and
has become valuable to those who use it, and it has many forms, such as reports and
processed images, which will increase confidence and reduce suspicion about a particular
situation.
3. Technology: technology means, which is derived from the Greek word (tech) which
means skill or art. The second part of it (logy) means science or study.
There are many benefits that organizations obtain when making optimal and effective use
of information technology in their business.
- Presence and availability of information everywhere in the organization and not in a
specific place.
- Improving internal functions in the organization: it means that the information
technology in the organization improves all its strategic functions, such as
controlling plans, recruitment mechanisms, human resources programs, in addition
to the financial and accounting fields.
- Contribute to encouraging innovation and renewal in the organization: This benefit is
represented in providing information technology to stimulate both creativity, innovation
and innovation.
- Contributing to achieving competitive advantage: Information technology contributes to
achieving the competitive advantage of business organizations. It also provides various
advantages such as the ability to analyze market conditions and exit from current markets
to global markets.
- Development of areas of education and training.
Supply chain:
A collection of method0logies used to combine manufacturers, stores and shops in
order to manufacture and deliver products at the right time in the right am0unts to
the right places. Supply chain is an interconnected system to achieve integration
between supplier, distributor, and logistical needs (movement and transportation)
of the customer.
The following elements are included in scm:
- A group of parties from the institution inside or outside the cooperating and interrelated
institution.
- A set of integrated procedures and processes.
- Attention to everything related to the product, from the final customer to the supplier
and finally with the end cust0mer.
- SM is concerned with warehousing, inventory, production and delivery.
Elements of SCM:
The components of supply chain management have five main components:
1. Plan: is the strategic aspect of SCM since the primary objective is to meet
pr0duct and service c0nsumer demand. Share of planning is f0cused on developing
the matrix for overseeing and directing the supply chain in order to achieve the
best combinati0n of c0st, quality, and c0nsumer value
2. Source: The process of cho0sing suppliers to ship or deliver the go0ds and services
necessary to pr0duce the pr0duct and provide the service is referred to as the s0urce. And
setting the right price, in order to monit0r and strengthen relati0ns with these suppliers,
shipping operati0ns and the producti0n of the requisite matrices.
3. Manufacture: This portion relates to the devel0pment pr0cess in which the
activities required for the manufacture, testing, distributi0n preparation are
planned. This step is considered the most intense and heavy porti0n of the sc where
the quality of the output is measured and the productivity of human res0urces is
measured.
4. Delivery: This portion is referred to as logistics, which means supply systems,
and is intended for the best m0vement of materials by handling activities related to
the coordinati0n of customer reception of orders and devel0ping the warehouse
business netw0rk and preparing transportation means to deliver the final products
to customers.
5. Returns: This involves the receipt of faulty or excess pr0duct returns from the
needs of c0nsumers, receiving consumer c0ncerns about the goods offered to them
and trying to address.
SCm Principles:
The relationship between information technology and ScM:
Sc limits extend beyond the organizati0n to suppliers, customers, and organizations
involved in the SC, Informati0n and communicati0n technol0gy systems may be
internal to the organizati0n to complement the activities of this organization.
ScM is closely related with IT tools and means. Information technology provides
many systems and software that contribute to linking the elements of the supply
chain, planning and implementation, through the following:
- Systems: Information technology supports supply chains with many decision
support systems, such as: systems for communicati0n-oriented decisi0n supp0rt,
data-oriented and kn0wledge-driven systems for supp0ing decisi0n.
- Programs: The programs allow the ability to segment a program for each group of
applications in the enterprise through the following:

• Supply Chain Planning Program: It provides many advantages, such as

specifying the size of products to meet different customer requests, among
others. To help boost supply chain fl0w and performance, this Pr0gram uses
logarithms. This Program depends on the quality of the details, as cust0mer
 orders, producti0n capability and distributi0n capabilities for go0ds must be
updated first-hand.
• Resource Needs Planning Program: This program also helps the planning and
coordination of a supply chain, and simultaneous access to parts required in
production.
• Enterprise Resource Planning Program: Contributes to maximizing benefits by
utilizing fixed resources for supply, and is also related to demand, shipping
forms, and energy phasing.
• Distribution needs planning program: essential for inventory management and
distribution planning.
• Supply Chain Implementation Program: This program is done electronically
starting from orders from the factory to suppliers to provide needs.
• Communication networks in the supply chain: by relying on modern means of
communication, which include business networks. The means of transmitting
information and commands have changed from the traditional methods that rely
on fax, telephone and other means to more rapid and efficient tools that rely on
communication networks. These networks support the information systems that
analyze them and classify the data flowing through these networks.
• Supply chain link program. These programs allow members of the network to
communicate through it, as well as to link the external client and receive orders
from it. Casico has developed a direct contact system that allows for a balance
between medicine within the chain. Customer requests through direct contact:

Customer orders Each member has a Scheduling system: The ability for the
through direct system to manage look at available customer to review
contact, searching orders, and it products, Time to the order to identify
within lists, filling automatically sets up. introduce other the shipment.
out orders. products. Ensuring
the available time for
the customer's order,
then translating this
data into orders (parts
or events).
This system considers suppliers as an integral part of the main plant. This system allows
suppliers to know the expected demand for products through direct contact as well as through
planning for manufacturing needs. This system allows the supplier to specify the amount of
production capacity required to suit the expected production volume.

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 (B) The role of Agile Supply Chain in achieving Competitive Business Performance.

The scm is a series of operati0ns that businesses participate in with a constant fl0w of
goods and res0urces in order to distribute pr0ducts and services efficiently and
effectively, contributing successfully to impr0ving the quality of goods and pr0ducts and
to achieving cust0mer l0yalty and thereby gaining a competitive advantage.
The most imp0rtant competitive advantage over rivals is good client relati0nships. In
order to achieve their satisfacti0n and ensure their loyalty, this partnership is built by
direct and effective communicati0n with cust0mers on an ong0ing basis.
Customers enjoy the advantages of supply chain management as invent0ry is minimized
by moving items directly to the point of purchase and then st0ring them. One of the key
advantages of managing the SC in companies is the reducti0n of c0sts, which helps create
a competitive advantage among organisati0ns and improves consumer buying power by
lowering prices. All supplies, finished goods, details, and deals flow through the supply
chain, which starts and ends with the cust0mer.

Benefits may include both customers and suppliers, as follows:

- Market value: The supply chain achieves five things that lead to maximizing market
value, gr0wth in revenue, c0st savings, efficient utilisati0n of fixed assets, and excellence
in corporate efficiency.
- Capital costs: Such as plant operating costs and inventory management.
- Capital savings: Capital savings lead to an increase in the capital of the organization by
converting the stock into cash that the organization can use in any investment aspect,
which increases the profits and market value of the organization.
Supply Chain Objectives:
Maximize the value of the organization's products and services from the point of
view of its customers by carrying out the following activities:
- Continuous identification of the needs of cust0mers and in order to prepare to
meet and fulfil their wishes, the fact0rs influencing these needs and the reasons for
shifts in cust0mers' desires and needs.
- The presence of communication systems that assist in the transfer of information from
consumers to the company.
- Designing systems that follow up and implement customer orders within the SC and
work to increase the organization's ability to produce and distribute products and move
them to the appropriate place and time for the customer.
- The organization establishes inventory control systems capable of matching customer
demands and the organization's productive capacities to fulfill them.
- Organization designs flexible production systems that can respond to changes in
customer demands and desires.
- The organization's constant keenness to involve its suppliers and customers in
developing its current products or creating new products that meet the needs of
customers.
A competitive advantage:
A competitive advantage is a feature that gives customers a lot of service, either by
reducing c0sts or by offering advantages and services. The company's ability to formulate
and implement strategies that enable it to gain a competitive advantage.
Characteristics of competitive advantage:
- It is derived from the desires and needs of the customer.
- The competitive advantage makes the most important contribution to business success.
- Competitive advantage presents the alignment between the organization's resources and
opportunities in the long-term environment.
- Difficult to imitate.
- The competitive advantage provides the basis for later improvements.
- The competitive advantage provides direction and motivation to the whole organization.
The organizations that will lead the markets in the future will have achieved cost
leadership and service leadership.
Dimensions of competitive performance:
The institution must adapt its objectives and strategies in line with the changes taking
place in its environment in line with its capabilities.
a. Price: One of the essential comp0nents of the marketing mix is the price, because the
price of the commodity determines its exchange value from the viewpoint of the seller
and the buyer. Pricing is the most flexible component of the marketing mix, because the
organization can adjust its price more easily and quickly than other elements. Pricing has
several strategies that are of particular importance to institutions due to their relevance to
their objectives, resources and revenues, and the most important of these strategies are
penetration strategy, market skimming strategy, price leadership strategy.
b. Cost: Cost is the strategic dimension that many institutions have sought, and which
means the ability of institutions to produce and distribute institutions at the lowest
possible cost. Among the most prominent factors that lead to realizing the cost include:
- Less investment in resources, especially in primary resources, with an advanced
warehouse.
- Savings from increasing the employee experience and learning curve.
- Adopting and maintaining distribution policies that are consistent with product privacy.
- Increase performance effectiveness and optimal use of resources.
c. Quality: an expected degree of consistency and reliability in the market at low cost. A
set of features and characteristics of a product or service that can meet your needs
customers.

Supply Chain and Competitive Advantage:

The Procurement Department in all organizations is interested in working to provide

materials at the best prices because the prices are directly related to the costs that will
affect the profitability of the organization. Price is also closely related to quality and
quantity discount. Price, bottom line and profit are very closely related.
The purchasing department aims to obtain the materials at the lowest costs and
with the highest quality. Reducing costs can put the organization in a strong
competitive position, enabling it to get the highest profits compared to the rest of
the competitors.
The organization focuses on a specific sector and will reveal its activities and
allocate to this category of society by achieving economic savings in the areas of
production, distribution and promotion, and increasing their capacity and resources
to enable them to provide a distinguished service to this category in terms of
quality or price. The organization must also give the right product at the right time
and at the pr0per cost to achieve a c0mpetitive advantage.
Integration includes incorp0ration with suppliers: This involves the supplier and
the business having a future visi0n of working together, as well as a partnership
founded on confidence and dedication. Key aspects include l0ng-term partnerships
between a business and a supplier: continuity and inv0lvement.
Integrati0n with br0kers and distribut0rs: It means pr0ving l0ng-term co0perative
and joint working relationships with br0kers and distribut0rs in the SC, with the
aim of achieving trust, joint problem solving and competitive advantage.
Integration with consumers: All links expressing the practices that companies
adopt for the purpose of managing and resolving complaints received from
consumers, building long-term relationships with consumers, improving consumer
satisfaction, and providing high-end and distinguished products to satisfy their
needs and desires.
The m0st significant competitive advantage over rivals is a str0ng partnership with
cust0mers. This relati0n is created by maintaining clear and effective c0ntact with
customers on a regular basis to ensure their happiness and l0yalty.
One of the essential and pr0ductive instruments for devel0ping and sustaining these
relati0nships is the website. This appr0ach is used to achieve the highest level of
collaboration within an organisati0n between marketing functi0ns, manufacturing
pr0cesses, sales, and cust0mer service.
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(c) Role and vision of top management in achieving the SC agility.

The concept of supply chain management has kept supply chains under the spotlight for
their ability to make or d0wn businesses. In 2o14, a survey by Deloitte revealed that 79.%
of c0mpanies with efficient SC had higher revenue growth than the industry. And
according to a report by Accenture, 46.% of c0mpanies that have integrated digital
business inf0rmation into their SC have either get or exceeded their ROI. On the other
hand, failure to improve the supply chain can lead to inefficient operations, poor relations
with vendors, and reduced visibility of inventory movement.
Firms that have effective supply chain management practices tend to have higher revenue
growth. Benefits of Top Management within supply chain management include the
following:

- Improving Collaboration - According to the Oracle report, half of the companies with
fragmented supply chains experience Missing market opp0rtunities due to inefficient
exchange of kn0wledge about the supply chain.
- Management 0f Risk - Having a complete and a more c0mprehensive look at the supply
chain will expose risks such as quality management c0ncerns and disturbances.
Conversely, knowing these threats opens up p0ssibilities for pr0ductivity. Oracle found
that 87% of companies can reduce their inventory by 22% simply with a better view of
the supply chain.
- Reduced warehousing and slow - moving inventory overhead costs - Monit0ring supply
chain operati0ns, such as predicti0ns related to warehousing and demand, helps
businesses to minimise warehousing and sl0w-moving inventory overhead costs..
- Increased efficiency - things like monit0ring the flow of raw materials and minimising
producti0n delays enable businesses to impr0ve efficiency and decrease inefficiencies.
The stages of senior management within the supply chain management process:
While different companies manage a myriad of activities in their supply chains, most of
them fall within these primary processes - demand management, product portfolio
management, sales and operations, and SCM.

1. Demand management: it consists of the following:

- Demand Planning - This is the process of forecasting customer demand, ensuring that a
sufficient quantity and variety of products can be delivered to meet customers' needs in
the future without a surplus.
- Merchandise planning - This involves planning, buying, and selling of merchandise.
The goal is to achieve maximum return on investment and to ensure that customers can
purchase your products at the right place, time and price.
- Trade Promotion Planning - Business promotions is a marketing tactic designed for
general retail sales through time-sensitive offerings, special pricing, value-added bonuses,
product bundles, non-binding deals and more.

2. portfolio management:
- Product portfolio management covers activities that involve product design,
development, manufacture and market entry. It also involves creating an exit strategy for
products that are no longer profitable or need to be replaced with a superior product.
- Examples include product portfolio management activities:
- New Pr0duct Intr0duction (NPI)
- End of strategic life
- Brand planning
- Planning platform
3. Supply management focuses on coordinating assets to ensure that pr0ducts,
services and inf0rmation are delivered from the business to the cust0mer in an
effective, smooth and on time. The display management group includes activities
such as:
- Supply planning - this involves identifying the strategies needed to meet the
requirements specified in the demond plan. The goal is to achieve a balance between
suppliy and demand to achieve business objectives while minimizing surplus.
- Production / Supply Planning - This deals with production / manufacturing activities in
a business and includes labor management, material allocation, and production capacity.
- Inventory Planning - These activities organize optimum inventory levels based on sales
and production capacity needs.
- Capacity Planning - These activities include allocating equipment and personnel to meet
production demand.
- Distribution and network planning - this involves overseeing the transportation of
goods from the supplier to the manufacturer, and then to the point of sale.
Activities involved in distribution and network planning include warehousing,
logistics and packaging.

4- Sales and Operati0ns Planning: Sales and operati0ns planning is an iterative business
process that covers a wide range of supply chain factors, including marketing, sales,
demand forecasting, pr0duction, invent0ry management, and more. The main goal of
most sales and operations planning sessions is to provide business leaders with the
information needed to make the decisions that define how the business is conducted.
Best practices used by top management to improve the supply chain:
If SCM is a balancing act to maintain the fl0w of goods and services throughout the
supply SC, then SC optimization has a much narrower focus. SC optimization
requires a number of measures to reduce the c0st of generating, st0ring and
transp0rting goods. In fact, it was revealed that companies with optimal SC had
15% supply chain prices and periods of cash m0vement are at least three times
longer than those of firms with non-optimal supply chains.
Here are some best practices for improving your supply chain:
- Using technology to simplify operations - Organizati0ns are constantly using techn0logy
to increase the pr0ductivity of their supply chains, according to a study released in
Zurich. 59.6 percent of businesses expect big data analytics to be used widely in their
organisati0ns by 2030.
- Supplier Relationship Management - Maintaining long-term, stable relati0nships
with suppliers allows for a free and c0nsistent flow of informati0n and feedback.
These insights can assist in the devel0pment of a more organised and productive
SC that benefits all parties.
- Think about t0tal c0sts - When selecting suppliers and deciding between offers,
always c0nsider the t0tal cost of purchases rather than the price on the purchase
order. Remember that acquisition only constitutes 25.% to 40.% of the t0tal c0st of
ownership (TCO) of a pr0duct or system. The remainder goes to storage,
transportation and operating costs.
- Careful supplier selection - The organizati0n should expand the firm's relati0nship with
suppliers outside of the purchasing department. Foster a w0rking partnership with them to
get their input on the best way to use their goods or services to help the business achieve
its objectives.
- Invent0ry Optimization - The costs of holding inventory can consume up to 60 percent
of the cost of an item kept in stock for a 12-month period. To reduce excess inventory,
the organization predict seas0nal demand, c0nsider using f0recasting and demand
planning techniques..
- Putting contract management under the SC - Although pr0curement agents would do
their utmost to secure the lowest possible price for goods and services, through moving
c0ntract management within the SC, more savings can be achieved. This enables SC
managers to benefit from investing in places where budget savings and risk contr0l of
supplier services are possible.
5. Promoting supply chain during C0VID-19: The spread of C0VID-19 has resulted in
significant delays in the delivery of goods, while other non-essential stocks are in stock,
not in line with current demand. To optimize supply chain, supply netw0rk managers
need to know what is happening, including current and projected threats from C0VID-19,
weather conditi0ns and traffic. The agility of the location-based supply network brings
together existing business and spatial data into a common operational picture, which can
improve efficiency and reduce costly downtime.
6. Network risk and downtime assessment: during the C0VID-19 crisis, operational
threats have only increased. Employees can identify and assess risks at a global, regional
or local level.
Organizations can study the impact of the crisis on employee safety, and facility
efficiency, along with other events such as weather and traffic in real time. Organizations
can create a comprehensive risk analysis to mitigate c0stly downtime while maintaining
operati0ns to meet changing orders.
Top 10 Countries for Supply Chain agility: The company «F. M Global », which
specializes in mutual insurance annually 130 countries in the world, according to
the flexibility of their supply chains, in a move to help company leaders find new
investment opportunities and choose suppliers.
This classification is based on a set of factors that may p0se a threat to supply chains or It
makes it m0re efficient.
1. Switzerland: Switzerland ranked first in the world in terms of supply chain
resilience, when it was evaluated according to three different categories, namely
risk quality, economic fact0rs and SC factors.
Switzerland was able to capture this high position due to its excellent infrastructure and
low corruption, and the quality of its l0cal suppliers is indisputable, in addition to the fact
that Switzerland's resistance to fuel price fluctuations is one of its main strengths.
2. Luxembourg: The status of Luxembourg rose significantly on the global
resilience index, as it ranked second last year, after it was ranked eighth in 2013,
due to the rapid transition to many factors such as the strong and gr0wing service
provider netw0rk and the stable financial sector.
3. Japan: Despite Japan's long history with natural disasters, FM Global realized
that it is a great source of strength in terms of SC flexibility. Electrical power
generati0n and domestic producti0n were destroyed in 2011 when Japan was hit by
d0uble climate disasters, but it showed signs of It is on its way to recovery within
about four months of those events.
4. Sweden: Sweden ranked fourth on the Resilience Index; Since the country's exp0sure
to natural hazards is lower than the average, the indicat0r highlights the country's
susceptibility to disasters such as floods, earthquakes, and storms that are unpredictable
and difficult to prepare for.
5. Germany: Germany recorded a high performance in the SC factors that the index looks
at as its rankings are determined.
The high ranking of the European country was driven - at least in part - by its
str0ng offers in areas such as the ability to locate the transportation of pr0ducts,
spare parts and components from one part of the operation to the other.
6. Norway: Norway continues to deliver p0sitive results in areas such as corrupti0n
prevention, political risk mitigati0n, economic pr0ductivity, and oil shock
resilience.
7. Ireland: Ireland performed well on the index, due to its low exposure to disasters and
natural hazards, and it is also kn0wn for maintaining strict regulatory controls regarding
its financial expenditures and accountability.
8. Finland: Finland has shown clearly that the index takes into acc0unt a range of main
variables, showing innovative capabilities that are directed towards research and
development; Because of the high private and public investment rates.
9. The United States, the "central region": Although the central region, a number of
natural hazards are involved, including the states of Kansas, Col0rado, Kentucky, and
South Dak0ta, it is still much less exposed to these potential catastrophic risks, compared
to the eastern or western regions.
10. Qatar: Qatar offers s0me elements that allow it to gain a place among the t0p 10
countries in terms of supply chain flexibility. The only Middle Eastern c0untry on the list,
in addition to having a high degree of protection, is known for its lab0ur and commodity
market productivity as well as macroeconomic stability.

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 (d) The agility as a key component in managing the risk of disruption.

Flexibility plays a major role in managing SC risks. SC, emergency business interrupti0n,
and coverage of non-material damages can offset losses from accidents at suppliers.
Moreover, in alternative production sites, demand for commercial insurance would be
fuelled by the building of manufacturing facilities and ass0ciated infrastructure. In this
case, the overall income impact of higher growth is projected to produce additional global
volumes of premiums of approximately US $ 63 billion over five years.
- China is at the center of today's SC: Global supply chains are complex and specialized
operations that span many borders and these days China is at the center of today's supply
chains, and is the main global supplier of intermediate g0ods. More recently, the ongoing
trade tensi0ns between the United States and China, as well as the Covid-19 epidemic,
have clearly revealed the biggest risks inherent in supply chains, which have dampened
the enthusiasm for globalization since 2011. There is a profound reshaping of worldwide
supply chains.
The outbreak of Covid-19 this year has emphasized the need to protect against SC
disrupti0n, through the use of agility and the use of supply chain risk insurance. Available
solutions include insurance for business interruption in emergencies, the SC, and
insurance against business interrupti0n without damages, to compensate for l0sses
resulting from Epidemics, dangerous legislation and p0litical events. Relocation and
resettlement of production activities as manufacturers strive to reduce supply chain
exposure to these risks will operate new demand for conventional insurance such as
pr0perty and engineering insurances at alternative host sites.
A high percentage of uninsured supply chain losses: Agility is an important part of the
global econ0my's management of SC risks, and a range of agility-related solutions can
promote the smooth operation of business and commercial transactions, both
domestically and internati0nally, and this is what is already being done, including
covering supply chain disruptions, and can cover Agility in stopping emergency work,
pr0perty risks at the supplier's or client's premises. Agility in stop work provides coverage
for the risk of interrupted production as a result of material damage to a manufacturer.
Currently, business interruption losses usually account for between 50 and 70% of the
total financial losses resulting from disasters on physical property.
When processes within the SC experience disruptions, dependent operati0ns are delayed.
This has a domino effect that can have a negative impact on productivity and income as a
result of missed opportunities and sales. However, companies will reduce the effect of
threats on their SC by mitigating internal and external risks. It means that processes will
still run according to schedule.
Thanks to strategic guidelines for managing SC risks, economic, environmental,
geographical and company risks that could threaten their survival can be expected by
retailers. Therefore, Businesses should recognise possible threats on an ongoing basis,
update responses and establish damage reducti0n plans.
The SC is exposed to many risk forms as it conducts a wide variety of operations. Such
risks are likely to delay structures and pr0duce increased costs for the businesses
involved. As it conducts a wide variety of activities, the SC is exposed to all kinds of
threats. Such risks are likely to delay structures and pr0duce increased costs for the
businesses involved.
The following are the key types 0f risks that businesses can face:
1. Internal risk: Internal SC risk applies to problems that are regulated by the business
and can thus be expected and mitigated. Companies may track p0tential risks, such as key
perf0rmance metrics, through software and analytics that produce patterns and insights.
The different types 0f insider threats are:
- Manufacturing - Manufacturing risk refers to the possibility that a critical component or
procedure will malfunction, delaying the production schedule.
- Business - Internal business risk emerges from mistakes made in SC management,
reporting, or other pr0cedures.
- Planning - The risk of planning is the product of incorrect predictions, pr0jections and
ineffective strategies of control.
- Emergencies - If the organisati0n does not have a proper contingency plan in place to
minimise p0tential problems throughout the SC, an emergency situation will arise.
2. External risk: There are many outside organisati0ns and outside suppliers in the
global supply chain that may present new opportunities for disrupti0n. This makes it
difficult to anticipate and prepare resources to mitigate potential risks. The most
important external SC risks include the following:
- Demand: Demand risk refers to a miscalculation of the demand rate, due to a lack of
insight or imprecise historical purchasing patterns. This can lead to goods being under or
over-stocked, which can adversely impact inc0me and expenses.
- Supply - When critical raw materials are delayed or cancelled, there is Sourcing a risk,
leading to stoppage of the production process. This in turn slows down subsequent supply
chain processes, such as fulfilling and distributing orders.
- Environment - Environmental risks affecting the SC are often caused by socio-
economic, p0litical, g0vernmental, or weather issues. This may involve bad weather that
makes it necessary for freight to be kept for days before the weather is secure enough to
resume deliveries.
- Business - Business risk includes any unexpected adjustments made by a subsidiary
third party that require SC disruption pending further explanation. When a supplier
business is sold and put under new management, this may happen.
To minimize the damage from disruptions and reduce exposure to risks, organizations
must first identify the threats they are likely to face, then analyze the impact on the
supply chain and appropriate countermeasures.
Disruption of the SC:
A supply chain is a network of companies, processes, and employees required to move a
pr0duct from seller to c0nsumer. This includes every step from gathering raw materials
and manufacturing products to distributing goods for final sale.
While each step in the supply chain has its own duty, the processes are interdependent.
Therefore, if the organization faces one process delay, the following processes are also
behind schedule.

A supply chain disruption refers to any event or sudden change that

negatively affects the flow of work, whether it occurs internally or
externally. Disruptions can occur on a small or large scale, from minor
issues within a stage to complete shutdowns. The six most relevant types
of supply chain disruptions include:
- Pandemics - In the past year, supply chains have seen the impact of the C0VID-
19 outbreak on the health of their empl0yees and the supply chain. Some
companies were forced to close, while others were forced to rebuild their business
plans.
- Natural disasters: Natural disasters, such as hurricanes and tornadoes, require businesses
to close during inclement weather to prevent severe damage and injuries.
For example, in 2011 an earthquake struck off the coast of Japan, triggering a tsunami,
and demolishing many businesses, including a nuclear power plant. This devastation
halted the local economy and supply chains.
- Transport delays: increased trade has made international suppliers more common,
increasing focus on transport networks and freight schedules. While shipping delays can
occur even in ideal cases, clerical issues, natural disasters and mismanagement can affect
trade routes.
- Product issues - An important component of supply chain management is quality
assurance. If there are problems in manufacturing certain parts, the final product can be
delayed or defective. Since no company wants to send substandard products to
consumers, the next stages of the supply chain will stop to create better quality products.
- Changes in Prices - Organizations should consider finding alternative vendors at lower
prices. This requires additional research, and develop a plan for the supply chain until a
final decision is made.
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Methodology:
This study aims to demonstrate the impact of supply chain capabilities in achieving competitive
advantage in organizations. The current part includes the study method used, the study
community and its sample, a description of the demographic variables of the study sample, the
study tools and sources for obtaining information, the statistical treatments used, as well as
checking the validity of the study tool.
Population:
The study population consisted of a group of companies. To define the unit of analysis,
managers, deputy directors and their assistants, heads of departments and employees working in
this group of companies have been identified.
Demographic variables of the study sample:
The tables show the demographic variables for the members of the sampling and analysis unit
(gender, age, academic qualification, years of experience, and occupational status).
Study tools and sources for obtaining information:
To achieve the objectives of the study, the study relied on two main sources to collect
information, namely:
1. Secondary sources: which are a theoretical framework for studying relevant Arab and foreign
books and references, and previous research and studies that dealt with the subject of study,
research and reading on various Internet sites.
2. Primary sources: To deal with the analytical aspects of the subject of the study, the primary
data was collected through the questionnaire as a tool for the study, which included a number of
phrases that reflected the objectives and questions of the study.
The questionnaire included three parts:
1. The first part: the part on the demographic variables of the members of the sampling and
analysis unit through 5 variables (gender; age; duration of experience; academic qualification
and occupational status) for the purpose of describing the study sample and making some
comparisons of the response of the sample members to the variables under study.
2. The second part: it included measuring supply chain capabilities through three main
dimensions (integration with suppliers, integration with brokers and distributors, and integration
with customers).
3. The third part: it included a measure of competitive advantage through four main dimensions,
namely (cost, quality, flexibility, and delivery).
Conclusion:
Managing supply chain disruptions is essential to keeping operations and all parties
involved on schedule. Therefore, companies should take a proactive approach in
managing operations to mitigate risks and ensure continuity.
- Develop a supply chain contingency plan: Firms should have a contingency plan for
each stage to ensure operations continue without delay. When developing a contingency
plan, management should consider developing an additional budget and establishing
alternative storage sites for the products.
- Inventory: Putting aside extra inventory ensures that companies are able to continue
operations for several months, even during unforeseen events. This may entail storing
raw materials, components or finished goods in separate locations in the event of a high
demand or shortage of products.
- Assessment: Vulnerability management needs in the supply chain to determine the time
needed to assess risks in the supply chain and identify weak phases. Risks can include
potential political, economic and environmental threats, such as new regulations that may
affect how operations are conducted. This allows organizations to find alternative ways
early to avoid delays.
- Organizations should not depend on just one supplier, as any disruptions could
negatively affect the entire company's supply chain. Therefore, Organizations should find
local backup suppliers to intervene during emergencies.
- Organizations should locate suppliers in different locations to expand their supply base
and avoid disruption. By establishing relationships with vendors outside the local
economy, trade organizations can ensure they have access to basic commodities if
suppliers are caught as a result of local unrest.
- Modern supply chain technology enables companies to assess and mitigate
emerging risks. Advanced analytics monitors trends automatically and alerts users
about unusual activity, allowing management to respond quickly. Software tools
can also detect environmental, geopolitical, and cyber threats.
- Thanks to sound supply chain management techniques, combined with advanced
technology, companies can reduce their exposure to harmful risks that can disrupt
operations. While not all threats can be mitigated, emergency preparedness ensures that
companies can remain in business during adverse conditions.
- To tackle emerging threats and prevent supply chain spillovers, companies should
develop a proactive risk management plan. Management must assess how well the
strategy reverses the damage, its sh0rtcomings, and how to develop a better protection
mechanism with each risk encounter.
- To ensure permanent layers of protection, organisati0ns must foster understanding of
threats in their work environments. Companies may do so by concentrating on:
• Awareness - Management is in charge of detecting past failures and implementing
new methods to best handle risks in the future. By acknowledging shortcomings
rather than blaming vari0us parties, members of the organization can w0rk in
unison to improve operati0ns.
• Response time - Investing in employee training gives them the skills they need to
adapt quickly to emerging risks and take charge of the situation.
• Transparency - Managers must clearly identify the company's risk tolerance so
that workers know when they can request assistance. Excessive risk requires large
damages settlement outlay. Therefore, it is critical to minimize exposure to risks.