FLOOD IN MUMBAI, HURRICANE IN HOUSTON
How to keep the supply chain running
As we read that JNPT port of Mumbai could not function for several hours due to floods in Mumbai; the customs online data interchange system could not work due to breakdown of servers. Similarly US port of Houston was severely affected due to hurricane Harvey, many shipping lines were diverted.
Earlier tsunami in Japan seriously disrupted the automotive industry as the supply chain broke down due to natural calamity. While we cannot always monitor these calamity prone areas for any pre-alert, there still are some steps which can ensure that supply chain keeps on moving:
- Companies/ports can invest in heavy duty generators to keep large office buildings running
- Companies can identify back up suppliers who can step-in to handle emergency product requirement
- Companies need to maintain buffer stock which can be diverted to the supplier’s warehouses as soon as the warning goes out.
By Kanika Adlakha