Supply Chain Disturbances: Contextualising the Cost of Risk and Uncertainty in Outsourcing

Supply chain disturbance factors, namely risks and uncertainties, although hard to measure, are central in influencing outsourcing decisions. Assessing the holistic cost of these disturbances within the context of supply chain (SC) activities is the focus of this chapter. By assessing holistic cost, firms will be advantageously positioned to make more informed outsourcing decisions. In order to better understand and contextualise the causes and consequences of cost disturbances during outsourcing we carried out five case studies with leading UK engineering firms. A resulting ‘disturbance’ framework seeks to assist in capturing the cost of risk and uncertainty in an outsourcing context.

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