Skip to content
Search AI Powered

Latest Stories

Perspective

Supply chain versus the volcano

The disruption to air traffic caused by Iceland's Eyjafjallajökull volcano is a reminder of why we should prepare for both expected and unexpected supply chain risks.

Even in daylight, Eyjafjallajökull makes quite an impression. I saw the fiery Icelandic volcano outside my airplane window as I flew back last month from the CSCMP Europe 2010 Conference. The volcano had erupted a few days earlier, threatening to cancel my flight, but it had subsided enough to permit air travel.

Last week the volcano erupted again, spewing clouds of volcanic ash that the eastward jet stream carried across the skies of northern Europe. Because the particles in that ash can knock out a jet engine, airlines grounded flights, and airports in Great Britain, Germany, the Netherlands, and France—to name but a few—were shut down.


Not surprisingly, the cessation of air freight movements to and from Europe has disrupted the global supply chain. Automobile plants in China couldn't get parts from Germany. Diamond cutters in India were unable to ship gems to dealers Belgium. Fruits and vegetables grown in Africa and the Middle East for European markets were left on the ground.

As of this writing, European airlines have resumed a limited schedule of flights, but it will take weeks for them to get back to normal. And who knows when—or if—the volcanic eruption will stop? What we do know is that a long-term disruption could have an enormous, costly impact on world trade.

I sincerely doubt that any supply chain manager or analyst had prepared a contingency plan for air shipment disruptions by an Icelandic volcano before the first eruption. (If you did, please contact me.) What we can learn from this is that, 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.

And if you operate an international supply chain and you haven't developed such a contingency plan, then I have one word for you, even though I can't pronounce it: Eyjafjallajökull.

Recent

More Stories

Report: U.S. companies are fast to adopt digital supply chains

Report: U.S. companies are fast to adopt digital supply chains

More enterprises in the U.S. are now implementing digital supply chains as competitive differentiators, according to a report from the technology research and advisory firm Information Services Group (ISG).

Organizations are working to make their supply chains more resilient to disruptions and responsive to abrupt market changes, the firm said in its “2024 ISG Provider Lens Supply Chain Services” report for the U.S. In the wake of major geopolitical events that have affected supply chains, including international conflicts and the COVID-19 pandemic, companies are seeking to prevent or quickly bounce back from supply or demand shocks.

Keep ReadingShow less

Featured

DHL online shopper report

DHL report shows seven factors about American online shoppers

Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.

First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).

Keep ReadingShow less
storm track forecast map hurricane rafael

Louisiana and Texas watch Hurricane Rafael approach

Gulf Coast businesses in Louisiana and Texas are keeping a watchful eye on the latest storm to emerge from the Gulf Of Mexico this week, as Hurricane Rafael nears Cuba.

The island nation today is bracing for storm surge, high winds, and destructive waves, according to the National Hurricane Center (NHC) at the National Oceanic and Atmospheric Administration (NOAA).

Keep ReadingShow less
white house

Business groups push back on Trump tariff plan

In the face of campaign pledges by Donald Trump to boost tariffs on imports, many U.S. business interests are pushing back on that policy plan following Trump’s election yesterday as president-elect.

U.S. firms are already rushing to import goods before the promised tariff increases take effect, to avoid potential cost increases. That’s because tariffs are paid by the domestic companies that order the goods, not by the foreign nation that makes them.

Keep ReadingShow less
clorox brands

Clorox partnership helps suppliers meet carbon reduction targets

Consumer packaged goods (CPG) provider The Clorox Co. has partnered with Manufacture 2030 (M2030) to help Clorox's suppliers meet their carbon reduction targets and advance the company's long-term goal of reaching net-zero emissions by 2050.

In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.

Keep ReadingShow less