After reading this blog, it occurred to me that everyone in the supply chain--with the exception of the OEM--seems to be scrambling to build in this flexibility and resilience we are talking about. Natural disasters are one thing, but it seems to me there is not enough focus on the poor forecasting that pervades the industry. It seems to be a given that this problem will never be solved, but isn't it easier for one company to change, rather than 50 or 100?
Great question, Himanshugupta! The shape of the curve is representative of the fact that measures such as finished goods or raw material inventory are leveraged, but ultimately depleted during "Time of Full Impact" portion of the curve. A relevant article related to the resilient enterprises can be found here.
Lalit, i am curious to know the reason of the double dip in the plot/curve during 'Preparation for recovery'. Is it only artistic impression or something hardcored into the recovery process? I expect a single dip if the disruptive event is transient.
This is the reason why lean program is embraced in most manufacturing companies. Reduction in waste and effective use of all available resources. Lean process is a smart move!
"it's important to know beforehand about all the possible sources and causes of disruptions."
Agreed! When you can't possibly predict every points of failure, you can still know in advance which sources are more reliable and less subjcet to disruptions than others.
@Flyingscot - True, but most manufacturers don't want to have to much excess capacity - efficiency depends on full use of as many resources as possible.
Technology plays a critical role in assimilating large and complex data sets from upstream and downstream members of the value chain, analyzing it and modeling it to optimize the supply chain.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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