This document discusses how seismic activity can impact supply chain management and strategies for preparation and response. It first notes how recent earthquakes in Japan disrupted supply chains for various industries. The rest of the document outlines a four-step approach to managing seismic supply chain risks: 1) identify risk factors and levels of exposure, 2) define mitigation strategies, 3) implement strategies, and 4) monitor practices. It provides examples of strategies like avoidance, postponement and security. The document also discusses resilience and how companies, organizations and governments can respond more broadly to seismic events.

1. The Influence of Seismic Activity
on Supply Chain Management:
Preparation and Response
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2. 6/3/2014 2
Few industries have been spared from the supply
shortages of components, ranging from
semiconductor chips to metal forgings and rubber.
Toyota and Honda have shut down temporarily
within Japan, Apple may see delayed shipments of
the recently released iPad2, and Boeing’s new 787
Dreamliner could see further delays …. MHD Supply Chain
Solutions May 2011.

3. 6/3/2014 3
An international survey of more than 550 organizations from over 60 countries, which considers the causes and consequences of disruption,
the techniques and approaches to identify key supply chains, and methods to gain assurance of resilience capability

4. The Extended Supply Chain
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5. A Global Footprint
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6. Preparing for Disruption
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Identify Risk Factors
Determine Exposure
Define Mitigation Strategies
Implement and Monitor
Practices

7. Identifying Risk
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7
Likelihood
Low
High
High
High
Low
Low
7(Falasca et al 2008)
Using multiple sources
and classifying risks into:
• Supply
• Operations
• Demand
• Security
Identify Risk Factors
DetermineExposure
Define Mitigation
Strategies
Implementand
Monitor Practices

8. Determining Exposure
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Density
Low
High
High
High
(Falasca et al 2008)
Identify Risk Factors
DetermineExposure
Define Mitigation
Strategies
Implementand
Monitor Practices

9. Defining Mitigation Strategies
• Avoidance
• Postponement
• Speculation
• Hedging
• Control
• Sharing
• Transferring
• Security
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Identify Risk Factors
DetermineExposure
Define Mitigation
Strategies
Implementand
Monitor Practices

10. Implementing Strategies
Enablers of risk strategy implementation:
• Complexity management
• Organizational learning
• Information technology
• Performance metrics
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Identify Risk Factors
DetermineExposure
Define Mitigation
Strategies
Implementand
Monitor Practices

11. Responding to Events
6/3/2014 11(Tierney and Bruneau, 2007)
Resilience

12. Broader Responses to Events
(Companies)
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13. 6/3/2014 13
Broader Responses to Events
(Organizations)

14. 6/3/2014 14
Broader Responses to Events
(Government Entities)