With the recent volcano eruption in Iceland, major manufacturers with global suppliers have had to halt operations as flights were grounded throughout Europe. Earlier this year, an earthquake in Chile ground supply chains in the area, halting major food source supplies.

Can disaster planning really help prevent these supply chain disruptions? Are the risks associated with lean inventories worth the cost when operations are halted until supplies are re-stocked? Natural disasters like this, and even the current BP oil leak, can prompt manufacturers to look more closely at their master operating plans.

Read More: http://www.manufacturing.net/Article-Handling-Supply-Chain-Disruptions-052110.aspx?menuid=242

Tags: Cost Reduction, cost reduction strategies, Expense Analysis, Spend Management, Supply Chain, supply chain analysis, supply chain audit, supply chain cost reduction

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