The Effect of Supply Chain Disruptions on Long-term Shareholder Value, Profitability, and Share Price Volatility
By Kevin Hendricks and Vinod Singhal
Published
on Apr 20, 2010
We continue to provide perspective on supply chain risks and their impact on shareholder value in this third report by Professors Singhal and Hendricks, who are the leaders in this aspect of supply chain. This area is most critical for executives whose supply chains drive the value of their firms. Besides the math, this report has graphs and charts that drive home the point. Reducing supply chain disruptions impacts not only operational metrics, but strategic value as well.
"While most executives can see the value proposition of improving efficiencies and reducing costs, many executives are having a hard time getting a handle on the economic consequences of supply chain disruptions. This may have prevented many executives from making investments and changes that could have mitigated the risk of disruptions."