What term describes a situation where a supply chain might be disrupted due to unexpected events, such as natural disasters?

The concept of force majeure refers to unforeseeable circumstances that prevent someone from fulfilling a contract. In the context of supply chains, it specifically pertains to situations where external factors, such as natural disasters, severe weather events, or other extraordinary occurrences, disrupt the supply chain. These events can cause delays, damage to infrastructure, or loss of goods, which can ultimately impact the ability of businesses to operate effectively. Understanding force majeure is crucial for procurement and supply professionals as it helps in anticipating risks and developing strategies to mitigate disruptions caused by these unexpected events.

The other terms, while related to operational challenges in supply chains, do not capture the essence of sudden and uncontrollable disruptions as force majeure does. Operational failure typically refers to internal issues that lead to the inefficiency of processes, while supply chain resilience focuses on the ability of a supply chain to adapt and recover from disruptions. Continuity planning involves strategic arrangements to maintain operations during disruptions but does not inherently address the unpredictable nature of force majeure events.