RESTRETCH (REverse STREss Testing in supply Chains)
In recent years, supply chains worldwide have become increasingly sustainable, but at the same time more vulnerable. Unexpected events such as the coronavirus pandemic, the war in Ukraine and floods in Thailand have shown that existing risk management methods often fall short. Such events were simply not included in the models, resulting in serious disruptions, high costs and unnecessary environmental damage. This project, “REverse STREss Testing in supply Chains” (RESTRETCH), aims to change this. Using a new method – reverse stress testing – companies can identify weaknesses in advance of a crisis and respond accordingly.
Instead of assuming known risks, reverse stress testing reverses the approach: it starts with possible disaster scenarios and then works backwards to discover which parts of the chain fail first. By applying this method, companies gain better insight into their vulnerabilities – both in terms of disruptions and sustainability. The project is developing a broadly applicable framework that is being tested in practice at four large companies. This has resulted in an approach that is not only scientifically sound, but also directly applicable in everyday practice.
RESTRETCH provides a new framework that enables companies to test their supply chains for resilience and sustainability. By gaining insight into the impact of potential disruptions in advance, companies can take targeted measures to prevent downtime, respond more quickly and operate more sustainably. This contributes to stable business operations, limiting waste and reducing CO₂ emissions in the event of sudden crises. In addition to practical insights for participating companies, training courses and case studies are also being developed that can be used more broadly within the sector.
