PLANNING FOR SUPPLY CHAIN DISRUPTION

Still recovering from the impact of Japan's Tsunami disaster, the manufacturing industry was recently dealt another blow when Thailand suffered its worst floods for more than 50 years. The result of the manufacturing industry's diversification into these foreign shores is that disruption t...

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Bibliographic Details
Published in:Supply Chain Europe 2012-01, p.28
Main Author: Healings, Steven
Format: Article
Language:English
Subjects:
Contingency planning
Cost reduction
Emergency preparedness
Globalization
Manufacturers
Manufacturing
Offshore
Outsourcing
Risk management
Suppliers
Supply chain management
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Summary:Still recovering from the impact of Japan's Tsunami disaster, the manufacturing industry was recently dealt another blow when Thailand suffered its worst floods for more than 50 years. The result of the manufacturing industry's diversification into these foreign shores is that disruption to the supply chain is an all too common occurrence. Fundamentally, manufacturers need to place as much emphasis on the risks associated with the offshore market place as they would in their local market. Too often it is the 'out of sight, out of mind' approach that leads buyers to assume all will remain well once a supply chain is up and running. Supply chain risks can't always be insured against; although some form of insurance is advisable it should be seen as a last line of defence. Measuring risk in this world of globalized business is about weighing up risks against potential rewards. Getting close to and understanding your suppliers is also a key step.
ISSN:1742-447X