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Supply chain managers urged to learn from volcano crisis

22 April 2010

The chaos caused by Iceland's Eyjafjallajokull volcano should spur businesses without a "plan B" for their supply chain into action.

According to transport business publication DC Velocity, the incident demonstrates the importance of developing a contingency plan, particularly as supply chains become more global in scope and increasingly dependent on aviation.

Planes across Europe were grounded after the volcanic eruption sent large clouds of ash into the skies above the continent last week, bringing both commercial flight services and freight transit to a standstill.

The supply chains of several high-profile organisations became victims of the disruption, with BMW forced to slow production at its sole US plant in South Carolina after cargo flights were unable to leave Europe.

DC Velocity suggested that interim managers and other executives with supply chain responsibilities should learn a valuable lesson from the crisis.

"As more supply chains are spun out around the globe, supply chain chiefs must always be mindful of the risks of disruption, even when they come from unlikely places and in unusual form," the website commented.

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Categories: Procurement & Supply Chain

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