Targeting a Just-in-Case Supply Chain for the Inevitable Next Disaster
- Topics:
- Disaster Planning and Management
- Tags:
- American Society For Quality,
- Terrorist Attack,
- Strategy,
- Sourcing,
- Quality,
- Purchasing & Procurement,
- Management,
- JIT,
- Insurance,
- Homeland Security,
- ...
- Source:
- Reed Business
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Overview: Natural disasters, wars, and political upheavals occur regularly around the globe, playing havoc with the flow of parts and goods. Such disruptions are as old as commercial trade itself. But the dramatic terrorist attacks on the World Trade Center and the Pentagon a year ago brought supply chain risk into sharper focus. What makes the issue more significant for managers is the economy's emphasis on speed and efficiency, epitomized by the use of just-in-time delivery of materials and components. Companies have long been able to hedge or insure certain supply shocks. They buy insurance against electric power interruptions and flooding. All-risk insurance would seem to offer a way to protect businesses against losses from the next terrorist attack. The article gives an insight of several actions and their steps. There are certain advices like: Cultivating alternate sourcing arrangements, Lining up alternate transportation, Helping the customer decide what to choose, Building in quick response to shifts in demand, Managing inventory to the "right" level. The article ends with an advice on how to prepare for any further reality-bite.
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Format: HTML | Date: Sep 2002 | Pages: 1
