The observation about fish and crocs really helped me visualize what people and companies are going through in Thailand. My basement flooded a couple of years ago and we still haven't restored it--it's just too much to deal with. On another note, I'm wondering what distributors recommed customers do in situations like this. The normal reaction is to go out and stockpile products and we all know how that ends up. How do you guard against this?
It will be difficult to completely protect manufacturing industry against natural disaster as this will involve huge costs full re-structuring of the current industry practices. Although, a newer, leaner and more effecient supply chain may emerge from the ashes of this double disaster.
I anticipate a follow on impact on the financial sector from the huge strain on insurance companies from the companies they have underwritten.
@prabhakar, I will also add that we need to look into the lessons learned from these disasters as we make longterm plans for the supply chain. There is no need for knee jerk reactions, good short term strategies will help with riding the wave of the impact of the floods.
The Thailand floods is an unfortunate incident and the impact will be globally felt in auto and computer industries especially hard drive in particular.
@prabhakar, you hit the bullseye with your comments. This year has been a steep learning curve year as far as supply chain goes, first with Japan disaster and now Thailand disaster. The natural disasters are unpredictable and thus only limited buffer can be generated to subsidize the effect.
In my opinion , for the kind of natural disasters as Japanese tsunami and now the Thai floods, there is little that manufacturing sector can do . We have to just wait and watch the destruction caused by the nature . There is no pint in having a knee-jerk reaction to such disasters in chnaging your supply chain policies as who knows such disaster may not repeat in the next whole decade or a totally different kind of disaster will strike at a totally unpredictable place.
The long term planning however needs to be changed to take into account the possibility of recurrence of such tragedies.
Since the current tragedies have struck at the two supply chain hubs of eletronic industry , they will surely affect the long term policy planning.
I wonder if the supply chain will take the kind of action it needs to minimize the effects of a natural disaster such as this flood. Companies were going to change their practices after the Japan quake, but I haven't heard about any major shifts going on. We just move through one disaster to the next. At the same time, that's probably the reason we haven't seen change--there is no time or money for an in-depth examination of the supply chain.
It is hard to imagine the amount of effort it is going to take in just clean up, let alone getting manufacturing plants operational. I'm thinking best guess is Q2 2012. In that time I'm sure we are going to see price increases in products missing key components. I wonder how many companies will reinvest and stay in Thailand. I'm sure many are going to reevaluate staying in the region; this could hurt Thailand even more.
It will take some time for them to get out of water just joking, but they need to restore all the manufacturing plants and then look to start the manufcaturing at a full run.
It will take minimum of 3- 5 months for the companies to resolve and get on to high production numbers.
We need to wait and see for the reduction in price only with increase in supply prices can be slashed.
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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