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Supply Chain Management Options to Reduce Disaster Risks
Supply chain risk can be reduced with sustainable business strategies
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