Project
Reverse Stress Testing in Supply Chains
The RESTRETCH project takes a bold step towards adopting reverse stress testing in supply chain management, an approach that has thus far been exclusively considered by risk management of financial institutes. This novel and cross discipline perspective can significantly improve risk management in operations and supply chains. It gives stakeholders insight into potential failure modes, and how supply chains respond as indicators approach critical thresholds. RESTRETCH also aims bridge the gap between theoretical frameworks and real-world applications with partners.
Background
In recent years, the global landscape has been punctuated by various crises, challenging supply chains in unprecedented ways. From the COVID-induced shutdown of ports to the disruptions caused by the Ukraine war, the fragility of supply chains has been exposed. These crises, coupled with factors like energy price fluctuations and political tensions, have underscored the need for comprehensive risk management strategies. Traditional methods, focused on inventing scenarios, often falter in the face of rare, impactful events.
This highlights the demand for innovative solutions that can better prepare supply chains for disruptions.This three year project project is built around a novel concept - reverse stress testing. While traditional risk assessment techniques starts with creating scenarios, then estimate the likelihood and consequences of disruptions, reverse stress testing works in reverse. It identifies worst-case scenarios, then traces them back to the root events, offering valuable insights into critical failure points.
Project description
The RESTRETCH project strives for tangible impacts that transform supply chain resilience. It aims to achieve this through diverse means, such as fostering hands-on learning for students via several MSc thesis projects and internships. By disseminating findings through academic papers, articles in professional and newspaper outlets, and direct collaboration with industry, the project bridges academia and the business community.
It also enriches education by integrating results into curricula at institutions like Wageningen University and JADS. In addition, RESTRETCH will engage in conferences, social media, and case study development to amplify its influence. A final white-paper publication will further disseminate insights to a broad audience. These goals collectively underline RESTRETCH's commitment to reshaping supply chain resilience practically and academically.