Stocking Up For Disaster
Picture source: http://www.savorthesuccess.com/
INDUSTRIAL ENGINEER – VOLUME 41, NUMBER 9
BY CANDI S. CROSS
Basically, natural disasters are always related for what is happening with nature. Phenomena such as tornado and earthquake that happened in Mexico had become a case for the industrial word including the supply chain. Actually, earthquake is a risk that was supposed to become a part of companies which should be anticipated by preparing some strategic. In this era, the transportation rate has had no difference for the last ten years. Even though it is a good thing, some companies that applying short term strategic will not be developing and will be broken in a fairly long term.
Based on survey by UPS co-sponsored and Economist Intelligence Unit about important things related to the risk, the first thing said is that the expansion and complexity of supply chain has surpassed the ability for managing risks. Second thing said that there are several risks that cannot be anticipated as in the case of natural disasters. Thing to be done to solve them is to strengthen in the policy for integrating supply chain by doing some environment forecasting and set a high standard. And last is how transparency and accountability that is higher in the supply chain is a chain is a very important thing.
Abney once said “Growth will never go out style”. What Abney is trying to say is that the existing growth will definitely suit with the existing pattern. It is very important to be realized by the company as a basis for making strategy.
As already mentioned, transparency become an important part of risk management. An example is how M33 has several techniques that can be applied as is done by making fraud protection insurance policy and provides a range of data that is appropriate. Moreover, it can also make a team for monitoring and managing logistic and largo from other companies in order to be efficient. Another technique is by analysing and reporting the average volume and warnings for each delivery in an interval of 1 month.
According to Abney, UPS has had a strict rule in monitor quality. In this company, green practice is applied for the security of the supply chain. In terms of transport and storage, some changes made to the design so that the packaging system is more efficient. Despite of all the programs, the most famous UPS applied is “no left turn”.
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