Obama talks supply chain risk management

By Freddie Pierce
Its nice to see supply chain take a prominent stage in global political discussions, and things hit a crescendo today when United States President Bara...

It’s nice to see supply chain take a prominent stage in global political discussions, and things hit a crescendo today when United States President Barack Obama talked about his concerns surrounding the global supply chain.

Not surprisingly, those concerns were centered on supply chain risk management, which has become a topic of hot discussion in 2012.

“We have seen that disruptions to supply chains caused by natural disasters – earthquakes, tsunamis and volcanic eruptions – and from criminal and terrorist networks seeking to exploit the system or use it as a means of attack can adversely impact global economic growth and productivity,” Obama said in a letter dated Jan. 23 and released today by the White House.

“As a nation, we must address the challenges posed by these threats and strengthen our national and international policies accordingly.”


Report: 70% chance of 7.0 Tokyo quake in next four years

Thailand flooding supply chain breakdown

Check out January’s issue of Supply Chain Digital!

Last year saw some of the worst natural disasters in recent memory, starting with the 9.0 earthquake and subsequent tsunami that rocked Japan in March. Thailand flooding late in the summer also brought pressure among auto and electronic component manufacturers who were already hurting from the Japan disaster.

The global logistics world was also hurt by the Puyehue-Cordon Caulle volcanic eruption in Chile, which disrupted shipping in Latin America.

Obama’s plan for further supply chain risk management has been directed to department officials, who will meet with state, federal and international government agencies to find ways to safeguard against disruptions.

Will Obama follow through on his promise? Only time will tell. The only thing certain is that natural disasters will happen again, and it’s up to supply chain managers around the world to learn from 2011 and be better prepared.

Click here to download Supply Chain Digital’s iPad app!


Featured Articles

Air cargo resilience is focus of World Cargo Symposium

International Air Transport Association's World Cargo Symposium in London is focusing on using resilience to drive air cargo’s post-pandemic prospects

Sustainability measurements lacking, says EY survey

EY survey of supply chain leaders reveals need both for visibility on sustainability performance and a holistic business case to drive results

IBM CSCO & COO survey shows tech & sustainability key areas

IMB Institute for Business Value (IBV) study surveyed 1,500 CSCOs and COOs, and they are ramping-up investment in automation, AI and sustainability

Suppeco and Market Dojo partner on e-sourcing solution

Digital Supply Chain

Pitney Bowes Index shows China breaks 100bn parcels barrier


CPG packaging supply problems sees Lidl buy paper mill

Supply Chain Risk Management