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Mitigating Supply Chain Risks

Author(s):

J. Michael Kilgore
J. Michael Kilgore, President, Chainalytics LLC, (770) 433-1566; mkilgore@chainalytics.com

89th Annual International Conference Proceedings - 2004 - Philadelphia, PA
Abstract

Is your supply chain at risk of failure? Are your existing supply chain strategies increasing that risk? In 1995, an earthquake hit the port town of Kobe Japan, destroying 100,000 buildings and shutting down Japan’s largest port for 26 months. This great disaster forced 1,000s of firms to alter production, distribution, and inventory strategies just to survive. Procter and Gamble and Texas Instruments had to move their headquarters. B ut the worst part was that four major automotive firms had to halt production of more than 50,000 cars as parts couldn’t make it through the destruction. While this type of failure doesn’t occur everyday, the supply chain strategies that lead to it do. When a firm takes a traditional, cost minimization approach to supply chain strategy, it often increases its risk of failure or increases its overall cost.

Mitigating Supply Chain Risks — 127 KB (PDF)