Safeguarding a supply chain is one of the most essential task for an organisatio

Question

Safeguarding a supply chain is one of the most essential task for an organisation. Supply Chain needs constant analysis of different factors including factors of the supply chain.

For safeguarding the supply chain from the natural disasters following things can be done

Weather forecasting

Analysis of the weather forecasting before starting Logistics and always finding an alternative as well as substitute for the specific situation should be implemented. The times weather forecasting requires specific I on the overall weather condition of the different factors of the supply chain. Location of the manufacturer as well as the Logistic team can be very influential in determining the overall effect of the natural disasters over the supply chain.

Electronically secured

Every supply chain should be electronically secured as well as maintain. This is Pacific security and maintenance directly provides an internship support to the overall structure of the supply chain as well as maintain the efficiency as well as productivity of the supply chain. By having an electronic secure method would be very beneficial for a supply chain to maintain the specific efficiency.

Logistic alternative

Finding the Logistic alternative is also going to the major task which can be done for avoiding gas during the natural disasters. This is specific alternative would provide extra support to the world structure of the organisation in case of any natural disaster in the primary logistics system fails then the secondary logistics system would be turned on as a backup.

Using buffer

Using larger buffers can also be very beneficial for maintaining the specific usability of the supply chain. Buffering different segments of the supply chain would provide additional back up to the overall structure of the supply chain in case of any natural disaster. As supply chains can span long across the country or the globe buffer would directly provide an additional support to the overall structure of the supply chain.

Explanation / Answer

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CASE 14. Natural Disasters Disrupt the Global Supply Chain Aside from tragic human losses and incalcultralized manufacturing methods, including just-in-time, ble damage to property, manufacturers around the world were affected by two recent, unprec- disasters are unavoidable, and even early warning offers limited edented natural disasters. First came the magnitude advantages. 9.0 earthquake and tsunami that hit Japan, followed by deadly flooding in Thailand in the same year. While damage to Japan'sauto companies have pulled back from lean methods and motive parts makers and Thailand's disk drive industry immediately*9* affected customers like Honda and Apple, manufacturers as far away tockpe of critical parts. Afterall, in an insurance company's survey as Ohio and Denmark, making products from shoes to aircraft tires, also were hampered by supply chain disruptions all of which increase efficiency and reduce costs but may leave companies vulnerable to supply chain disruptions. Natural With the likelihood of more extreme weather to come, some again in redundancy-multiple suppliers, backup facilities, and completed before the earthquake in Japan, 600 CFOs were asked what threat to their revenue drivers they most feared. The most cOmmon answer: supply chain disruptions. Danish shoe manufacturer ECCO used scuba divers to retrieve specialized shoe molds from a flooded Thai factory to continue producing at other locations. Honda employees in Ohio grappled with temporanly reduced hours while awaiting parts from Thailand. Some key Honda suppliers in Japan had still not resumed shipments of components unobtainable anywhere else. Nissan, meanwhile, sent car parts normally intended for U.S. plants to Asia in order to continue production. Apple and Hewlett Packard predicted reduced future earnings, based on supply disruptions after hard-drive manu- QUESTIONS FOR CRITICAL THINKING 1. Do you think companies are wise to favor backup systems over 2. In what other ways could companies safeguard their sup- lean manufacturing? Why or why not? ply chains, including transportation methods, against natural disasters? facturer Seagate suffered damage to its two Thai factories, And with Sources: Regina Cine One Year Latet, Natural Dnasters Seill Ratting Supply Chains Bloomberg BNA, accessed November 30, 2012. www.bna.com: Bill Powell The lobal Suppy Chain: So Very Fragile CNN Moncy, accessed November 30, 2012, http//tech fortune.cnn.com: Thomas Farole and Julia Oliver."Shoe Molds and aut hard drives, computer manufacturers had less need of computer chips, so Intel also predicted lower revenues In Japan alone the economic costs of the earthquake and ts ScubDivers How Natural Disasters Affect Our Supply Chains World Bank Growth nami were running at $210 billion before the year was over, and losses in Thailand reached an estimated $30 billion only weeks afte and Crisis Slog accessed Nevember 30, 2012, httplogs workdbank.erg "Supply Chain New: Did Major Supply Chain Disruptions from Natural Disasters in 2011 Realy Change Approach to Supply Chain Risk Management? Supply Chain Digest the floads receded accessed November 30, 2012, www.scdigest.com The two disasters' lingering (and sometimes cascading) effects led some companies to reconsider their reliance on lean,

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