Predicting Supply-Chain Disasters

Supply chains are essential for getting products from the manufacturer to customers. However in the case of natural disasters, this can be difficult. Nonetheless, there are steps companies can do take to improve the efficiency of their supply chains. A Harvard Business Review Blog outlines some suggestions that can be enforced to eliminate supply-chain disasters.

1. After disasters, companies are more focused on assuring staeholders rather than restoring services. This is understandable but a system must be devised to make restoring services a priority.

2. Stakeholders need to work together and continuously improve the resilience of their supply chains. Chains are more efficient than they were 20 years ago, but need to be more resilient. Car companies are constantly updating their systems so customers can have confidence in their products. The same idea applies here- consumers need to have confidence in supply chains.

3. Government incentives are necessary. With more funds, companies can develop the responsiveness system that is necessary.

I think the above are valid solutions to solving supply chain disasters. However an essential step to improve the efficiency of supply chains is communication. Usually, the super storms that supply chains and stores need to worry about are forecasted. Thus, better communication between forecasters, supply chains and stores need to be utilized. If, for example, a hurricane is predicted to occur, the supply chain must anticipate the need for bottled water, non-perishable foods, etc.

If supply chains integrate the above suggestions, supply-chain disasters will be less devastating.

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