In the past year, we have seen multiple natural disasters that have shown us just how fragile supply chains can be, even with all of the modern technology we have today. There has been flooding in Thailand, earthquakes in Japan, and now Hurricane Sandy.
Complicating things even more are additional risks that impact the supply chain, such as issues surrounding politics, the economy, and security.
Working with a third-party expert that has experience in mitigating risk, as well as managing and responding quickly to supply chain disruptions, can make a huge difference in your operation.
In order to be prepared for unexpected supply chain disruptions, your company should have a plan in place. Some things to make sure you include in your plan are:
- Strategically positioning your inventory
- Working with a partner that can help procure alternate transportation carriers and modes should you need additional capacity
- Ensure that there is collaboration between shippers and suppliers
- Make the investment in technology that improves your visibility
- Incorporate energy solutions that can provide power in the event of power loss (for example: natural gas)
- Consider a distribution center network that is regional or near-sourced
- Incorporate lean methodologies
- Conduct a network analysis to identify vulnerabilities
- Include alternate sourcing strategies and broaden your supply base
It is important to partner with a provider that has the resources, experience, technology, infrastructure, and financial ability to help mitigate supply chain risk.
