What are the unpredictable events that are putting your supply chain at risk?
‚Tsunamis. Earthquakes. Political upheaval. When you’re overseeing operations for a global business with customers thousands of miles away, you may stay up nights thinking about the major unpredictable disasters events that could put your supply chain at risk. But the truth is, an everyday event like a power outage is far more likely to cause disruption of your global supply chain. According to study by PwC and the Business Continuity Institute, 75% of companies experience at least one major supply chain disruption a year.“
Some of them are seemingly pretty mundane, but even those can bring your business to it’s knees if you’re not prepared for them.
Some of them are:
„Today, there is more reliance than ever on digital systems to facilitate real-time, accurate data that’s a critical component to inventory management. As supply chains become more complex and borderless, technologies that include GPS tracking and wireless sensor networks help deliver information that’s essential to important business decision-making. – That’s not possible during a power outage. „
„Climate characteristics like the Polar Vortex will make winters longer and colder in March, and even April. It is also predicted to cause unpredictable and potentially disruptive weather patterns. Kevin McCormack, assistant professor at Northwood University, says supply chain problems, such as those caused by bad weather, are predictors of future business issues. „
“Could your supply chain survive weeks or months of absentee employees? This might not be something businesses deem as a huge threat, but the last thing you want is a supply chain paralyzed by widespread illness.“
What can you do? It’s hard to prepare for the unexpected but certain issues have been shown to happen more often than others (like the one mentioned above) and you can prepare for that.
Identifying the events that could bring your companies supply chain to a halt, mitigating the risks by changing your business methods, software and products, training your employees; and plan your response well ahead of time so you’re prepared and equipped to react promptly in a critical time.
Original article written and posted by Business Insider