Supply Chain Managers Mine Field of Problems!!

http://www.supplymanagement.com/news/2015/global-supply-chain-managers-face-a-minefield-of-risk

Supply chains are a collection of companies and processes involved in moving a product from the suppliers of raw material to the suppliers of intermediate components, then to final production, and ultimately, to the consumer. These supply chains are normal very large and complex and include many companies located around the world. A single disruption no matter the size will cause many supply chains to fail. These could be anything from loss of power which is common in Brazil to deflation which Japan is currently facing. These disruption will can cause supply chains to fall apart and products and service to be delayed which will cause companies to lose potential contracts and services with customers. Companies that use supply chains that are located in areas that are still developing have no easy answer to the problems that they face of potential shutdowns.Supply chain managers have a tough job of finding ways in which to insure that production does not cease because event s that are out of their control.  One way that companies can combat these scenarios is by being on the leading edge with their suppliers by developing a strong and intimate relationship with them. This will allow them to be able to work hand in hand with them to find and avoid potential disasters.

Discussion Questions:

1)Do you think that with the current amount of natural disasters and economic situations that many of these countries are facing that companies begin to relocate elsewhere?

2)Do you think that if Japan and Europe are stuck in a prolonged period of deflation that they will have to adjust their supply chains to be more cost effective? If so how will they do so?

3)Since disruptions are being calculated in as part of the supply chain operations what do you think companies are doing to ensure that their business is not hindered?