Wednesday 21 November 2012

Austerity Disobedience a Threat to the Supply Chain?

Authored by Mickey North Rizza

Last wednesday in Europe: Hundreds of flights were cancelled and car factories and ports closed. Trains barely ran in Spain and Portugal. According to reports, additional international rail services were disrupted by strikes in Belgium.

Beyond the obvious disruption of these protests, they also impact the supply chain. Transporters in areas affected by protests can’t deliver – leaving manufacturers in many areas (even those outside the affected zones) scrambling to find the parts they need to fill orders.

How do you prepare for the unpredictable? Supply chain disruptions are inevitable and unpredictable — outages are bound to happen from time to time. But that’s no excuse for not being prepared. Manufacturers must ensure they have complete visibility and intelligence into their supply chains at all times. By knowing the weak spots, and having insight into potential danger zones, manufactures can diversify their risk — and at least have a plan in place for when supply chain disruptions hit.

No supply chain will ever be 100% safe from supplier disruptions. However, organizations that develop lasting collaborative relationships with their most strategic vendors can at least have peace-of-mind that operations will continue to run smoothly — even in the face of unpredictable disruptions.

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