Supply chain risks abound! Just look at the recent bankruptcy of Hanjin. It created havoc in the global supply chain. Ships were virtually stranded on the water. No one knew how they’d get paid. Yet, customers still needed the product. And so the results were scary. Have you thought about these types of risks within your supply chain?
At our APICS Inland Empire executive panel and networking symposium, we had a panel of experts on navigating the global supply chain. A renowned international business attorney brought up a significant topic — what if a conflict brews in the South China sea? Your supply chain could stop in its tracks. What backup plans do you have?
How about natural disasters? We cannot control these but they have a BIG impact on our supply chain. Think about hurricanes, earthquakes, fires, volcanoes and many others. Unfortunately, they seem to occur at an increasing rate — or at least they quickly go viral. Recently, there was a fire along the 15 freeway in Southern CA on the road towards Las Vegas and the north. It created havoc beyond trucks stranded on the freeway. Manufacturers ran short on materials. Railroads and trucks were re-routed. Customers had to air freight if speed was essential. It even impacted the ports.
And there are many other risks. Security is a big topic alone. The bottom line is you must prepare for these risks. What will you do to ensure business continues?