Supply Chain Risk - Catastrophic Disruptions

Supply chain risk - catastrophic interruption Background supply chain is all activities that produce or provide products and services to customers (Reid & Sanders, 2010). Historically, supply chain management has reduced costs. Supply chain cost management is an important strategic plan to maintain competitiveness in the global market. Every organization has a supply chain. The supply chain includes external, internal, receive, and transmit. External and internal supply chains are components of people, parts, raw materials, raw food, information, people and project development, engineering, labor, finished goods and products.

Supply chain turmoil has several problems and challenges, and when suppliers or sub-suppliers are affected by disasters and risks, the entire supply chain is confused irrespective of categories. Tracking and managing the supply chain itself is a difficult task. The supply chain is also vulnerable to international terrorism, which not only disrupt business but also weaken business. In September 11, 2001, logistics to several factories ceased, many manufacturers encountered the problem of damage immediately after the attack (Sheffi, 2001). For example, Ford has to stop work on the assembly line as the loading of parts and trucks will be delayed from the border between Canada and Mexico. In the case of Toyota, Sequoia, an Indian SUV factory, stopped production within several hours due to delays in the German transport steering sensor due to air traffic closure.

Supply chain turmoil, possibility, reality is the enemy for all companies. Supply chain turmoil "The unexpected and unexpected event confuses the normal flow of goods and materials in the supply chain There are three main types: internal risk, external risk, network related risk (Juttner et The variables proposed in (al.2002). (1993) contain environmental, industry, organization, specific problems, decision-maker related variables and other risks can be represented by variables.

The global supply chain is affected by the uncertainties of various supply and demand situated at various nodes of the supply chain and creates various risks that can be confusing. Companies that exceed supply chain risk will increase business resilience. They can enhance the company's competitiveness, support growth, and produce measurable returns. Many companies have recognized this and are now implementing a supply chain risk management program. This survey examines the open approach to supply chain risk management and seeks to understand the differences in risk between the two industries (electronics and pharmaceuticals). For administrators, it provides knowledge about the types of risks that may exist in the supply chain and provides various strategies for identifying and managing risks.