Supply chain resilience - Transportation Research...
Transcript of Supply chain resilience - Transportation Research...
![Page 1: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/1.jpg)
Improving Resilience of Supply Chains
During Disasters
1
![Page 2: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/2.jpg)
Disasters Are Bad for Business
43% of US companies experiencing disasters
never re-open,
and 29% of the others
close within 2 years
US Department of Labor
2
![Page 3: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/3.jpg)
WE HAVEN’T BEEN LOOKING AT THE WHOLE PICTURE
3
![Page 4: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/4.jpg)
Waves or Particles
Particles You can think of the universe as particles, or as waves but not at the same time
Waves
4
![Page 5: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/5.jpg)
We transportation people have tended to think of the world as
Particles
Infrastructure
5
![Page 6: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/6.jpg)
When we should be thinking of Waves
Supply Chain
6
![Page 7: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/7.jpg)
A Small Example of Widespread Impact
Volcanic eruption in Iceland (2010) impacted
– Nearby ponies
– European air passengers
– Auto assembly plants in the US, Germany, & Japan
– Rose growers in Kenya
– Manufacturers worldwide
7
![Page 8: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/8.jpg)
Global Supply Chains of Hard Drives Assembled in Thailand
Source: ESCAP 8
![Page 9: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/9.jpg)
Commercial Impact of 2011 Thai Floods
• Thailand is the #2 producer of hard drives in the world
• Floods there resulted in a 30% drop in global hard-drive production
• Company losses – Sony $162 million – Canon $603 million – Western Digital $199
million Source: AON Benfield, 2012
9
![Page 10: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/10.jpg)
Japan’s Experience After 2011 Earthquake & Tsunami
90% of the businesses that closed went bankrupt due to indirect losses/damage
• SOURCE: Asian Disaster Reduction Center, Kobe Japan
10
![Page 11: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/11.jpg)
HOW TO ADDRESS SUCH A WIDESPREAD ISSUE
11
![Page 12: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/12.jpg)
ASIA PACIFIC ECONOMIC COOPERATION (APEC)
21 member economies 40% of world population 56% of world GDP 70% of natural disasters
12
![Page 13: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/13.jpg)
Seven Principles 1. Share information and knowledge to promote supply chain resilience.
2. Promote disaster risk management and hazard mapping to better understand potential risks to supply chain resilience.
3. Support planning and business continuity management to improve global supply chain resilience.
4. Promote best practice policy, regulations, and flexibility to enable global supply chain resilience.
5. Leverage regional cooperation to support the supply chain, including coordination with other multinational organizations working on supply chain resilience inside and outside the APEC region.
6. Promote critical infrastructure protection and inter-modalism as a key component of supply chain resilience.
7. Recognize and promote best practices in human resource and capacity management in the context of supply chain resilience.
13
![Page 14: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/14.jpg)
Supply Chain Resilience
Government Infrastructure Planning
Businesses Disaster Preparednes
s 14
![Page 15: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/15.jpg)
APEC FIVE YEAR ACTION PLAN FOR IMPROVED SUPPLY CHAIN RESILIENCE
15
![Page 16: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/16.jpg)
Focus on One Developing Economy Each Year
• Each year, develop an Action Plan for Supply Chain Resilience for one of the APEC economies – Involve partners (e.g. World Bank, USAID,
companies) – Conduct a workshop – Facilitate discussions – Jointly develop an Action Plan – Implement the Action Plan
• 2015 = the Philippines
16
![Page 17: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/17.jpg)
Promote One Principle Each Year
• Best practices
• Intense workshop with multiple participants from each participating economy
• Cooperation between government, business, NGOs, international organizations
• 2015 = Hazard & risk mapping of supply chains
17
![Page 18: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/18.jpg)
Working Together to Improve Supply Chain Resilience
18
![Page 19: Supply chain resilience - Transportation Research Boardonlinepubs.trb.org/onlinepubs/conferences/2014/UTC... · 2. Promote disaster risk management and hazard mapping to better understand](https://reader033.fdocuments.in/reader033/viewer/2022060320/5f0d03767e708231d4383f67/html5/thumbnails/19.jpg)
Want to Participate With Us?
Janet Benini
US Department of Transportation
+1 202 366 4550
19