Recently, the historic United Nations Climate Change Summit was held in Paris. Nearly 200 countries participated and agreed on mutual consensus to keep the global warming at bay by reducing greenhouse gases emission. However, the aftereffects of industrialization globally are witnessed in the form of hurricanes, typhoons, earthquakes, storms, tsunamis and global warming. And their impact is devastating on supply chains of businesses.
Russia suffered a loss of $ 15 billion in 2010 as droughts and wildfires destroyed crops. Typhoon Halong in South-East Asia resulted in loss up to $ 10 billion due to 41 days business disruption. Just a few examples will be enough to glance at nature’s wrath. The economic losses are mainly due to the halt in the supply chain. Natural disasters don’t even allow the supply chain to take the first step of acquiring raw materials.
In the face of calamities like this, companies will need to evaluate the risk of losing a supplier from the affected region. Firms need to look at their contingency plan to find alternate solutions. They need to have the plan to take the inventories to a safer location if possible. If it is not possible then have a backup plan on the mandate to avoid losses.
Have a predefined and predictive technology to at least caution you on what to keep and what not to be kept. At least using technology can create enough back up to save your supply chain. That’s why any company shouldn’t crucify itself between the regret of yesterday and fear of tomorrow.
No comments:
Post a Comment