Innosuisse: Triple R in Global Production Networks – Top-Down vs. Bottom-Up Approach

January 25, 2022

Perspective – network, production site or individual process The aim of Supply Chain Triple R is to identify and control risks in global supply chains at an early stage. Causes, measures and effects are considered from the perspective of robustness, resilience and responsiveness. The approach combines two perspectives:

▷ Top-Down: The entire production site incl. inbound and outbound network.
▷ Bottom-up: Individual processes or a concretely definable and detailed business problem

While focusing on one of the two perspectives can lead to neglecting relevant aspects, considering both perspectives enables a holistic picture. Nevertheless, both perspectives with different system boundaries require different approaches when defining relevant network characteristics and when analyzing the impact of disruptive scenarios on supply chain objectives.

Dependence between top and bottom

The current pandemic is influencing both purchasing and demand. This requires an analysis from a top-down perspective, taking into account entire regions, production and distribution networks. The specific effects in individual company processes due to, for example, demand shifting to e-commerce channels, restricted availability of certain material groups or the more difficult internal personnel planning can only be understood in detail from the bottom-up perspective. The interdependencies of top-down and bottom-up must be recognized prospectively and mapped correctly in supply chain risk management.

Interested?

If you are interested in the current status of the Triple R Innosuisse project, please contact us. We would be happy to show you how corporations or SMEs pragmatically assess their supply chain risks and configure the production network accordingly.

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