Continuity conundrum

4 November 2011
Rebecca Ellinor, managing editor, Supply ManagementToyota Motor Corporation has once more announced changes to its vehicle production as a result of the floods in Thailand. The automotive sector is not alone in experiencing difficulties, supply chains in the retail and electronics industries have also suffered disruptions as a result. The global supply of hard disk drives is expected to hit rock bottom for at least 56 days according to IT supplier Probrand, and prices could rise as much as 25 per cent as a result. It highlights again the issue of back up plans and multiple sources of supply. A global survey, conducted by the Business Continuity Institute and published this week, indicated a growing need for procurement departments to increase focus on sub-contractors since problems are often found further down the chain. It quizzed 559 companies from 62 countries and found more than a third of supply chain disruptions are the result of problems with indirect vendors. Peugeot Citreon is onto this and as we reported last week it plans to roll out a programme requiring vendors to have alternate sources of supply in different countries. And Japanese manufacturer Renesas Electronics is redeveloping its business continuity plan to factor in its entire supply chain in case another disaster strikes. Once disaster strikes it’s too late to create effective plans, contingency plans for a broad range of scenarios need to be in place ahead of time and flexible enough to deal with whatever’s thrown at them.
LATEST
JOBS
Hounslow, Heathrow /Richmond upon Thames
Competitive salary depending on experience plus generous share award
Tails.com
London
GBP40000 - GBP50000 per annum + Excellent Benefits Package
Bramwith Consulting
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE