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Thailand Flood Impact Lingers

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Barbara Jorgensen
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Blogger
Flood impact
Barbara Jorgensen   11/30/2011 3:05:54 PM
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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?

Damilare
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Stock Keeper
Re: Long term planning
Damilare   11/30/2011 10:44:02 AM
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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.

Ms. Daisy
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Supply Network Guru
Re: Long term planning
Ms. Daisy   11/29/2011 6:17:07 PM
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@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.

Anne
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Stock Keeper
Re: Thailand Flood Impact Lingers
Anne   11/29/2011 1:29:40 PM
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The Thailand floods is an unfortunate incident and the impact will be globally felt in auto and computer industries especially hard drive in particular.

Himanshugupta
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Supply Network Guru
Re: Long term planning
Himanshugupta   11/29/2011 12:55:15 PM
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@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. 

prabhakar_deosthali
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Supply Network Guru
Long term planning
prabhakar_deosthali   11/29/2011 8:52:14 AM
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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.

 

Barbara Jorgensen
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Blogger
Flood
Barbara Jorgensen   11/29/2011 8:04:34 AM
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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.

Jay_Bond
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Supply Network Guru
re:
Jay_Bond   11/29/2011 7:02:52 AM
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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.

saranyatil
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Supply Network Guru
Re: Price increase
saranyatil   11/29/2011 6:17:32 AM
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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.

tirlapur
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Supply Network Guru
Re: Price increase
tirlapur   11/29/2011 6:06:12 AM
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I wonder when the situation will be fully recovered?

@FLYINGSCOT, According to industry estimates that it should take around six weeks to get back to normal situation.


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