Security And Its Impact On Global Supply Chains

In some regions of the world, bad weather and logistics aren't the only things that can impact supply chains - terrorist threats can be a very real disruption. For example, the Bangkok Post recently noted two bombing attacks that greatly affected supply chains.

The news source urged companies to plan for this as they develop their global supply chains. By having a contingency plan and creating more efficient supply chains, these risks can be mitigated.

"Shorten the supply chain when possible," the Bangkok Post recommends. “The shorter a supply chain, the less potential for disruption along its path. Shortening the supply chain may refer to number of tiers of suppliers, or distance travelled for various parts, components, finished products."

Companies should also avoid relying on one means of transportation - if a road is damaged, then air freight, railroads and waterways could be used to circumvent the issue.

It's crucial to look at all areas of a supply chain - what may not be an issue in one part of the world may be a huge problem in others, so it's important all potential risks are considered.