Where Is the Risk? - A Look into Supply Chain Risk Management


Where Is the Risk? - A Look into Supply Chain Risk Management

Risk management has been a constant supply chain topic this year, and it’s no surprise-- cataclysmic events have affected many countries in recent times, like the earthquake that shook Japan and the tsunami in Thailand. Natural disasters happen, and they tend to put companies with part of their supply chain in those nations to the test. For some, these events meant major shipping delays and failure to distribute finalized products to the masses. Other companies who had strong back-up plans in place, however, only saw minor effects to their supply chain.  Although these events have long passed, it’s important to take a look at the setbacks they can create in order to effectively draw up a solid risk management plan and be ready for the future.  One way of doing this is to stay up-to-date with the latest developments in the global supply chain.

Maplecroft conducted a global study of the top countries prone to supply chain risks in 2012 based on numerous factors like past incidents, weather patterns and surveys.  The results showed that Bangladesh, India, Vietnam, the Philippines, Myanmar, the Dominican Republic, Honduras, Laos, and Haiti are the top ten countries prone to a high amount of risk to the supply chain.  These countries have a mixture of both a weak infrastructure for recovery and a high occurance of natural disasters such as floods and earthquakes.  Even though other countries like Japan are also prone to risk, their infrastructure allows them to help companies rebuild and restructure more quickly and successfully. Using this information, businesses can see where the biggest risks are and plan ahead accordingly with alternative supply chains and vital communication channels.

Source Consulting is dedicated to staying up to date with new developments in the supply chain community as well as potential and current disruptions that could have various effects on your business.  With innovative shipping technology unique to Source and their experienced personnel, the company strives to help customers with shipping questions, with the aim to reduce shipping costs overall. It is imperative for all companies to stay conscious not only of past disruptions but also of future potential for risk, as well as the dangers involved in both setting up a supply chain in a high risk location and shipping there as well.  Good preparation through a solid risk management plan is essential in helping to create a smooth and forward-thinking supply chain.