Manage supply chain during disasters

Disruptions of all sorts can provide insight into how robust and efficient your supply chain is.

Loose supply chains can hamper companies in interpreting information.

For example, lightning struck Philips Semiconductor’s factory in New Mexico in 2000, sparking a fire that shut down production of its radio frequency chips, which both Nokia and Ericsson were then using in their cell phones. Within three days, Nokia’s supply chain systems detected a slowdown of incoming parts from Philips and alerted plant managers and then corporate managers, who studied how the companies managed this disruption.

Within two weeks, Nokia redesigned its phone to use other companies’ chips and persuaded Philips to shift production of its chip to other factories.

Ericsson, on the other hand, didn’t respond to the problem until four weeks after the fire, in part,because its manufacturing and supply chain systems weren’t programmed to spot risks early enough. Nokia locked up alternate suppliers; Ericsson lost market share that it never regained. By the end of the year, it was out of the phone business. Supply chain problems“change markets.”

Heart breaking!! so gear up to chk how you gonna manage supply chain when a disaster strikes else you have to change businesses maybe or you are out of the race for the market is not spare you for others mistak