SCRM can reduce vulnerabilities in both a reactive and a proactive manner: on the
one hand, SCRM is reactive, because it helps to monitor changes in the supply chain,
customer needs, technology, partner strategies, and competitors and to update the
risk assessment correspondingly (Hallikas et al., 2004). Hence, it lays the foundations
for fast reactions. Ergun et al. (2010) highlight how SCRM processes enable a
US restaurant chain to respond to hurricanes. Such major weather event triggers the
response systems and lessons learned are documented for future seasons. Further,
each functional area of the organization has clear responsibilities and plays a key role
in enabling quick recovery. On the other hand, SCRM can also reduce vulnerabilities in
a proactive manner: it helps identifying a potential risk and to assess its impact and
probability before it can occur. Then, the decision maker can implement actions that
prevent the risk or, at least, minimize the impact when occurring. Correspondingly,
Blackhurst et al. (2008) describe the case of an auto manufacturer who implements a
proactive way of managing disruptions by tracking risk ratings and risk indices over
time and monitors trends to determine if thresholds and unacceptable levels are
reached. In this way, a problem can be predicted and management action taken early
on.