|Planning for disaster will |
keep your supply chain
from sliding into
The Dark Side.
by Ed Rusch
Vice President, Corporate Marketing
Hurricanes. Power outages. Socio - geopolitical upheavals. Train derailment. Road closures. Contamination in a supplier facility. Terrorism, cyber-attack, sabotage or industrial espionage. Labor unrest. Global pandemic. Fires, floods and natural disasters. These incidents are not a work of science fiction and the number of them that can negatively affect the supply chain are real and virtually limitless.
Sometimes there are advance warnings; sometimes not. Some events are highly unlikely ever to occur; others are probably just a matter of time. The severity of impact might affect only a small area, or an entire business sector, or it could be (or become) catastrophic.
A Force Awakens
Obviously, detection time can vary wildly. The Pope’s planned visit to major cities is known well in advance and many planning resources are available. An explosion at a busy seaport will come with no advance notice. A salmonella outbreak, irregularities in automobile emissions systems, or payment systems hacks are incidents that are likely to be discovered well after their occurrence, so they actually have negative detection time.
Regardless, the importance of detection lead time is that it is the specific amount of time your organization has to prepare for the disruption and to try to diminish its effects. This is an important performance metric because it predicts your ability to respond rapidly and expediently. Assessing detection time, identifying reliable warning alerts and data sources, and developing flexible preparatory/emergency strategies are all valuable steps. At the same time, these initial steps help buffer against the kind of over-alarm that can create paralysis. Good detection mechanisms and accurate risk analyses are key to preparation, and preparation is key to your ability to deploy timely, effective, appropriate responses.
Supply chain interruptions can happen at any time, at any location, from any source. The more vigilant your organization is in detecting potential supply chain disruptions and developing alternatives to alleviate its effects, the faster you will be able to recover, the better you will be able to maintain throughput, and the more competitive you will be.
This article is related to the
Data Sheet: MasterControl Risk
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Have you shared your disaster plans with your suppliers? What is your procedure? Please comment below!
Since November 2007, Ed's contributions in the advancement of technology and business networks are delivering many impactful outcomes for clients. His current marketing leadership role at Elemica is a confirmation of his ability to expertly facilitate a buyer’s journey – enabling them to overcome complex challenges and become supply chain heroes.
Elemica is the leading business network for industrial process manufacturers and their customers, suppliers, and logistics providers.