A company closely monitors supplier performance and notices recent late deliveries from one supplier.

Supplier Performance Monitoring: Regularly tracking supplier performance is crucial for identifying potential risks early.

Flood Damage Disclosure: When the supplier disclosed the flood damage, it indicated a high risk of continued disruptions.

Shifting Sourcing: The company’s ability to quickly switch to a new supplier minimized the impact on sales, showing a prepared and proactive approach.

Risk Strategy:

Low Cost Through Reaction: This does not apply here as the company's response was proactive, not reactive.

Adaptive Supply Chain Community: Involves collaboration and flexibility but doesn't specifically address redundancy.

Reducing Vulnerability: More general, while the action taken is specifically an investment in redundancy.

Investing in Redundancy: Having multiple suppliers or backup suppliers ready to step in during disruptions directly fits the company's action.

Conclusion: The company’s actions reflect an investment in redundancy by maintaining alternative suppliers to ensure supply continuity in case of disruptions.

References:

Sheffi, Y. (2005). The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage. MIT Press.

Tang, C. S. (2006). Robust Strategies for Mitigating Supply Chain Disruptions. International Journal of Logistics, 9(1), 33-45.