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Supply Chain Management (during Natural Disasters)

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Supply Chain Management (during Natural Disasters)

A supply chain is a path that a product takes to move between the producers and the consumers. The supply chain procedure may be interrupted by natural disasters such as earthquakes, floods, insect infections, disease, among many others. The effects of such occurrences are devastating to the supply chain and the economy at large (Mentzer, 2019). These effects can be put into control through the use of the supply-based chain procedure. This procedure includes identifying the weak links and diversifying the economic activities, development of precise plans. Also, conducting disaster drills in advance and to prepare for the occurrence of a disaster in progress. The business needs to focus predominantly on the effects brought up by accident. It should focus on minimizing the impact of disasters. The disaster management procedure can be analyzed as in the essay below.

In the first case, the business must identify the weakest links in its supply chain. This step is the possible parts of the business operation, which could be struck in the event of the occurrence of the disaster. This step calls for the business management to carry out a thorough audit of all its units. The business should be in comprehensive awareness that in case the disaster strikes, any of its operations could get distorted. Management should not be concerned about the goods but also online and financial markets (Buurman, 2018). It must pay close attention to any part of the company that ensures its smooth operation.

Businesses must identify possible impacts on the firm, the workers, and its market share in case of a disaster. This identification of the weakest link in the supply chain will give a business enough time to prepare in case of an eventuality.

 

The business management must also consider diversification of the business operations. The business must look for other avenues to expand its operations. The firm has to invest in both the goods, online, and financial markets. The management must also be prepared to analyze the possible changes in the market in case of an eventuality. The business can also diversify by opening up branches in other locations. This step could secure its market in the occurrence of a contingency in a different market. The firm has to ensure that its supply chain is well diversified to the very last end. The supply chain must include any possible proper link in its way. The business can also diversify how it stores data and its market information. The company must consider involving the use of cloud storage just in case its local servers are lost in case of an eventuality. The business could also embrace working from home option.  This option suits employees only in case of a disaster in the workplace.

The supply chain could also be managed during a disaster if the business develops open and transparent plans. Once the company has identified the possible weak targets during an emergency, it has to implement ways in which these links could be protected during a disaster.  The business could also do some disaster management modelling analysis. This can help the industry to be assured on how it could minimize the costs of the disaster (Davis, 2016). The business could also identify a cost-effective disaster management procedure. The

company could also provide critical contact information to its employees in case of disaster occurrence. The market can also liaison with various suppliers in case their standard supply chain is interrupted.

The supply chain can also be protected from possible disaster by the business through the conduction of drills. The company does this to ensure everyone is aware of the backup plan. Business management could also conduct thorough investigations and determine how to mitigate the effects on the supply chain. The business can also do some planned and controlled drills to its employees to prepare them for an eventuality. These drills also enable the company to fine-tune its disaster management procedure over time. The business has a lot of time opportunity to prepare long before the occurrence of a disaster. The firm is therefore made aware in advance on how a tragedy can disrupt its operations.

The existence of disaster has been raving havoc to many businesses for a long time. Though most natural disasters are a regular occurrence, its impacts on a business supply chain can be mitigated. With the business management to put thorough measures to safeguard the supply chain, the effect of the disaster could be controlled. The business can also put in place recovery procedures in case the tragedy occurs and interferes with the supply chain. The company must also prepare for the occurrence of any natural disaster and can take precautionary measures, such as ensuring the supply chain. These efforts, coupled with thorough implementation, can help the business manage its supply chain in case a disaster occurs.

 

 

 

 

 

 

 

 

 

References

Buurman, J. (2018). Supply Chain Logistics Management. McGraw-Hill.

Davis, T. (2016). Effective Supply Chain Management. Sloan Management Review, vol. 34, pp. 35-39.

Mentzer, T.J. et al. (2019). Defining Supply Chain Management. Journal of Business Logistics, vol. 22, no. 2, pp 1-25. M

 

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