Natural cataclysms of the past year have heightened our awareness of just how global the supply chain has become. The Japanese tsunami and earthquake brought that awareness to the fore and affected many suppliers, hitting the tech sector particularly hard. The recent floods in Thailand have only emphasized the point further, with the closure of more than 1,000 factories and damages that run into the billions of dollars. According to a recent story in Forbes, more than 14,500 businesses, worldwide are feeling the effects of the floods.
Added to that is the new California Transparency in Supply Chains Act of 2010 that went into effect on January 1 of this year. The act states that retailers and manufacturers who bring in more than $100 million in annual gross receipts doing business in California must make a visible effort to eliminate slavery and human trafficking from their supply chains. Although the Act originates in just one state, it’s easy to see how its impact will reach far beyond the borders of California, likely having a ripple effect that can be felt worldwide.
Only time will tell what 2012 will bring, but it’s clear that those businesses with good supply chain management and a solid business continuity plan in place will be among those that succeed. Learn how to develop your plan with a free copy of The Definitive Guide to Business Continuity Planning.