1 Reply Latest reply: Nov 8, 2011 7:53 PM by Alyssa Sittig RSS

What is your supply chain disaster recovery plan

john westerveld Novice
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I spotted this article from the Wall Street Journal a few weeks ago. 2010 was a record breaking year for natural and man-made disasters. We had a virtual smorgasbord of catastrophes from flooding, to fire, to snowstorms. We had Volcanoes grounding air travel and earthquakes devastating an entire country. And of course, a major oil spill, the impact of which we will be feeling for years to come. According to the article, the economic losses from the disasters reached $222 billion US (three times that of 2009), which is only outdone by the human cost; 260,000 lives.

 

Obviously, these events has had a significant impact on many supply chains around the world...maybe even yours.  So I was wondering...what disaster recovery plans have you made for your business?  Do these plans include supply chain risk?  How often do you review them?

 

I've blogged about my thoughts on this here; http://blog.kinaxis.com/2011/02/coping-with-catastrophe-can-your-supply-chain-recover/

  • Re: What is your supply chain disaster recovery plan
    Alyssa Sittig Novice
    Currently Being Moderated

    I did some research earlier this year, after the Japan earthquake, and found that manufacturers aren't doing much to prepare for disaster, even though things are so unstable and interconnected globally. For one thing, supply chain risk management is difficult to do with the constant pressure to cut costs. Organizations are increasingly being  pushed to lean-up the supply chain by cutting spare inventory or “extra”  talent, moving non-core services to lower cost providers and reducing  suppliers.And even if manufacturers want to invest in shoring up their supply chains,  many organizations have delegated supply chain risk management so far  down the chain that the authority tasked with the job lacks any budget  to invest in it.

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