adapt to survive supply chain disruptions – part 1
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Adapt to Survive Supply
Chain Disruptions – Part 1
Mark Morley, Industry Marketing Director
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Today’s Agenda
• How Are Today’s Global Supply Chains
Being Impacted?
• Managing Business & Operational Risk
• Minimising Supply Chain Risk Through
Operational Changes
• How Can B2B Help Minimise Supply
Chain Risk?
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Today’s supply chains need to be highly resilient,
scalable and flexible to meet the challenges of doing
business during a period of significant disruption
Supply Chain Disruption is Becoming a Recurring Theme….
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Icelandic Volcano - 2010
Much of Europe’s airspace was shutdown due to the spread of volcanic ash in the atmosphere. As a result, global air freight shipments were severely affected.
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Japanese Earthquake - 2011
Japan’s East coast was severely impacted by the earthquake, many factories and utility infrastructures were destroyed and logistics networks ground to a halt.
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Japanese Tsunami - 2011
The Japanese Tsunami caused more longer lasting damage to Japan’s infrastructure and as a result supply chains have been impacted for more than 12 months.
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Thailand Floods - 2011
Many high tech companies were impacted by the Thai floods, at one point it was estimated that up to 90% of the world’s supply of hard disks had been affected.
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Thailand Floods - 2011
Honda’s factory was severely affected by the floods and as a result millions of dollars worth of cars had to be written off. Honda is now re-building the plant.
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Somali Pirates - 2011
Somali pirates have hijacked oil tankers and container ships. Goods exported from the West coast of India have had to be re-routed around the problem areas.
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Sinking of the Rena Container Ship -2012
Ocean freight is susceptible to disruption when a major container ship runs in to trouble. Most of the containerised cargo has to be written off.
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Sinking of MSC Napoli - 2007
BMW Customer Services – “Sorry Sir, we cannot seem to trace your new motorbike which was enroute from our factory in Germany!”
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Chinese Restriction on Export of Rare Earth Materials - 2011
China controls up to 90% of the world’s rare earth materials. Government export restrictions impacted the shipment of components across high tech supply chains.
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UK Strike by Fuel Tanker Drivers -2012
UK businesses disrupted by ‘potential’ wildcat strikes by 2000 fuel tanker drivers. The retail and grocery industry is always first to feel the pain.
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Factory Explosion Causes Global Shortage of Nylon12 - 2012
Explosion at Evonik Industries factory in Germany causes global shortage of CDT, a key ingredient of PA12 which is widely used across the automotive industry.
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Managing Business and
Operational Risk
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Business & Operational Risk and their Domino Effect
Source: Global Risk Report 2012 – World Economic Forum
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Example of Organisation Resilience Based on 18 Metrics
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Types of Supply Chain Risk
Source: APICS 2011 Supply Chain Risk Report
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How Well Do You Know Your Supply Chain?
Source: APICS 2011 Supply Chain Risk Report
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Thank You
Phones
US: 1-800-334-2255, option 3
EMEA: +44 (0) 1932 776047
GXS web sites
US: www.gxs.com
EMEA: www.gxs.eu
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