For example, relying on a single source or route for materials and parts might be more cost effective, but in this scenario, operations can quickly break down if the supply chain is disrupted.
@Carla, why do you think the companies are so hesitant to build backup so that supply chain is not disrupted during down time ? Is it because the companies don't have extra money to take such saftey measures or is it because companies dont expect prolonged supply chain disruption which will impact their revenue flow ?
So what measures the electronic supply chain can take to take care of such disruptions? In my opinion nothing !.
@Prabhakar, I think it would be too extreme to say that "we can't do anything about such supply chain distruptions". I think companies can do a lot of things which can help them during supply chain breakdown. For example everyone knows that Japan is prone to earthquake, one of the the things they can do is to move part of their businesses outside japan so that they can significantly reduce the risk.
UPS asked high-tech manufacturers based in the Asia-Pacific region about the supply chain aftershocks they experienced as part of its annual high-tech industry survey
@Carla, just wondering why this survey was specific to Asia-pacific ? Is it because Asia-pacific is more prone to supply chain disruption ? Do we have any similar compiled data for other regions too?
Rightly said, certain things are beyond our control. We cannot natural disasters but what we can control is minimizing the downtime and ensuring protocols that will enable a speedy data recovery so that the transactional details are not lost.
"So what measures the electronic supply chain can take to take care of such disruptions? In my opinion nothing!"
Prabhakar, "as much as possible" that's the answer. Certain things are beyond our control, where the super natural forces have to act. The same thing happened for Titanic, they build and claimed that it's one of the most advanced and secure luxury ship and we know finally what happens to it.
While I was working in the Atomic Energy domain, we came across a term "maximum credible accident" , a factor to be considered while designing the cooling system of the nuclear reactors .
In my opinion the disaster such as the Japan earth quake falls under that "maximum credible accident" category and we have seen that even the nuclear reactor at Fukushima , designed to wthstand such accidents , could not survive the onsalught of the resultant Tsunami.
So what measures the electronic supply chain can take to take care of such disruptions? In my opinion nothing !.
We have to just forget such natural incidents as one-off unavoidable events in our life.
It will be too expensive for small and medium companies to plan for alternative strategies for disasters of such a magnitude.
It depends on type of industry you are working in and who pays for this exepnsive approach. For most industtry, they soon forget the this disrruption and cary on with day to day business.
"It's critical that companies plan ahead to manage risks, especially in highly competitive industries such as high-tech, in which companies cannot afford disruptions in operations"
Carla, I agree with this point. But in economic slowdown and recession scenario, most of the companies won't try to invest more on the inventories. For them such investments are like dead investments, without an immediate return. I know most of our clients are following the same line and normally they stocks materials only for another one or two months production.
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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