The Importance of the Supply Chain


Without the supply chain, it would pretty much be impossible for businesses to do business
(Source: http://omiusajpic.org/issues/investing/supply-chain/)

I read a blog post about how to prevent major disruptions from happening in supply chains, which got me thinking about just how important the supply chain is for a business. The supply chain is there to keep track of where everything is coming from and making sure everything is where it needs to be at the right times. Part of creating a good supply chain is making sure that everything always flows smoothly throughout it, so being able to prevent disasters should also be integrated, if possible.

As it says in the article, if it’s possible to predict a natural disaster, it should be possible to predict where in the supply chain there could be a disruption. Companies that rely on inputs that come from sources that were expected to be hit by Hurricane Sandy could’ve planned ahead and arranged for their inputs to come from another source and be virtually unaffected by the disaster. By focusing on problems that could come up, companies could save a huge amount of money, along with generating revenue that wouldn’t have been possible with poor supply chain disaster prevention.

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