Eng. Mohamad Itani - when disasters shake global supply chain
When Disasters Shake Global Supply Chain Case Study Ipad 2 launchingPresented by: Eng. Mohammed Itani, MBA, DESM, CPES, CSCP, PMPTitle: Management Consultant & Private Equity Advisor
Globalization New markets New resources and suppliers New labor poolsDefinition: “The interdependence of economies globally that resultsfrom the growing volume and variety of international transactions ingoods, services, and capital, and also from the spread of newtechnology.”
10 keys to global SCM success 1 Delivered cost 2 Logistics automation 3 End-to-end visibility 4 Supplier portals and advance notice 5 Total ID and regulatory compliance 6 Transportation flexibility 7 Variability management 8 Integrated workflows 9 Integrated planning and execution 10 Financial SCM
Risks Risk Management StrategiesTransportation failures Redundant vehicles, modes, operators, etc.Supplier failures Multiple suppliersClimate change, weather Contingency planning (alternate sites, etc.), insuranceLicensing and regulation Up-front and continuing research, good legal advice,issues complianceSupply quality Careful supplier selection and monitoring; beware the low bid for crucial componentsLoss of customers Service, product innovation, customer communication, constant prospectingTheft and vandalism Insurance, security precautions, knowledge of likely risks, patent protection, etc.
Supply chain risk management prevention Balance risk Prepare for Share risksAssess risks. management disruption. among supply and cost. chain partners.Assess… Balance… Prepare… Share…• Transportation failures • Invest in supply chain • Do contingency • Work with partners. flexibility. planning.• Supplier failures • Ensure reliable • Have contingency plans. • Go beyond extra supply. roles.• Climate, weather • Be insured. • Know best practices. • Coordinate• Licensing, regulations response to crisis or • Invest in security. • Plan for supplier loss. problems.• Supply quality, liability • Test and train.• Lost customers • Maintain information• Theft, vandalism, etc. flow. • Consider RFID, GPS, etc.
Ipad 2Launching Affected By Japan Quake Issues in Apples overseas supply chainThe iPad 2 went on sale in the US on the day thetsumami struck Japanthe iPad 2s battery and memory are made in Japan.iPad 2 internal compass provided by AKMSemiconductor and touchscreen components likelysourced from Asahi Glass Company
Ipad 2Launching Affected By Japan Quake - ImpactApple faced difficulties meeting demand for its newlyreleased iPad 2:(cause of the shortfall, might have been related tounderestimated forecasting)• Electrical shutdowns, disrupted transportation system and employees absenteeism.• The shock and aftershocks factors made delivery of components a challenge.• Suppliers faced difficulties getting raw materials shipped in and components shipped out• Apple had also called off the iPad 2’s scheduled launch in Japan