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Supply Chain Management Options to Reduce Disaster Risks

Supply chain risk can be reduced with sustainable business strategies

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Supply Chain

Supply Chain Risks including hurricanes, earthquakes, avian flu, political unrest and terrorism

Supply Chain Network Vulnerabilities: Potential Gaps in Your Strategy -- Today's supply chain professional faces a dynamic range of natural and man-made risks including hurricanes, earthquakes, avian flu, political unrest and terrorism. Global sourcing and off-shoring reduce a company's visibility and control of issues within its supply chains. Additionally, lean supply chain valuation, just in time inventory, and sole sourcing create networks even more susceptible to environmental risk. Although corporate risk management mitigates potential loss due to these catastrophes, penalties and insurance cannot replace market share, repair harm to a company's reputation, or recover loss of customer confidence. Andrew F. Dailey , Geocritical, LLC

Daily Management of Operations Assessment and Options

The challenge that exists for supply chain executives is the ability to rapidly determine which daily events impact an organization's operations and need to be assessed and managed.

The ability to adapt critical supply-chain networks during a disaster with a minimal amount of disruption rests in the capacity to identify a network in a pre-crisis condition, and assess various potential disruptive scenarios and their impact on a company's operations.

"Pre-crisis condition" is an important point to make about supply chains. If anything is pointing to pre-crisis conditions, it is the chorus of voices in the green and sustainable business movement. And sustainability strategies are at the heart of a different approach to supply chain strength.

Supply Chain Globalization

Globalization comes at a price, and that price is vulnerability. And impact that heightens vulnerability -- to one's own company and everyone else's company (including your supply chain).

Greener Supply Chain Sustainability & Risk Management

Some key concepts of green and sustainable business that can provide creative strategic alternatives include:
  • Rebuild and maintain local and regional supply chain sources
  • Figure "life span" costing into material and product costs
  • Plan beyond "growth" strategy to deal with changing world economies that are flattening the playing field
  • Balance services with product production: lifespan service to plan, monitor, refurbish and recycle products to produce the end result: productivity.
  • Be a good community citizen everywhere you do business -- respect engenders respect and reduces risk.

Start with a new vision to deal with the new world reality in which we are deeply submerged. Build supply chain plans to support the vision -- not the other way around.

Edited by Carolyn Allen
| logistics | supply chain | globalization |

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