Copper mine in Chile
Inside many companies, the recession has caused supply risk to move from a secondary issue to a primary concern. Despite this interest, many companies are approaching the topic from a narrow scope, considering only supplier financial viability as a risk driver in their supply chain. According to Spend Matters’ affiliate site, MetalMiner, the Chilean 8.8 magnitude earthquake shows that supply disruptions can take many forms–and not just from suppliers going bust or cutting corners. According to MetalMiner, the “disaster serves as a reminder that supply risk in the form of supply disruption remains alive and well for many metal markets.” But geographic risk from proximity to moderate or high probability disaster extends beyond the metals markets.
Spend Matters wrote about this subject in regards to Apples’ Supply Chain a couple of years ago. In that post, I referenced a story that talked about how two critical Apple suppliers (who supplied the same parts) were located in close proximity to each other…
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Earthquakes Show Supply Chain Risk Extends Beyond Supplier Financial Viability is copyrighted by Jason Busch. If you are reading this outside your feed reader or email, you are likely witnessing illegal content theft.
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