Supply Chains Suffer from Disruptions Caused by Earthquake in Turkey

347 Views

Nexterus, a world-class supply chain management and third-party logistics (3PL) services provider, discusses how the supply chain disruptions caused by the earthquakes in Turkey and Syria highlight the need for supply chain risk analysis and network optimization. Top US imports from Turkey include stone and glass, iron and steel, textiles like bedding and clothing, vehicles, machinery, and electronics. While many of these products are made around Istanbul, away from the area the earthquake hit, the region’s infrastructure is destroyed, so products cannot move in and out of the area.

“When there is a major supply chain disruption due to natural disasters, pandemics, or other reasons, companies need to be prepared with alternative plans for continual operations,” says Ryan Polakoff, President of Nexterus. “Companies need to perform rigorous analysis of their supply chain network to uncover its vulnerabilities, and then create an overall risk management and resilience plan.”

Damages from the earthquakes have suspended operations in the Turkish container ports and at the Hatay airport. Crude oil futures were up a day after the earthquakes hit after the Turkish government ordered a shutdown of the Ceyhan oil export terminal on the Mediterranean coast. Critical infrastructure is unusable, and power outages are rampant, disrupting the flow of goods and transportation. All these interruptions result in significant delays in deliveries of goods, including relief supplies, to the devastated area and have caused major supply chain bottlenecks.

Nexterus suggests that strategic supply chain analysis and network optimization can help companies succeed when faced with the unexpected. Using “what-if” scenarios, Nexterus uncovers vulnerabilities and develops contingency plans in advance of a possible disruption of operations. The result is a strategic supply chain network that is optimally prepared against disruptions. When disasters occur, the business can be prepared to continue operations.

“Supply chain vulnerabilities can occur all along the supply chain network, including within the supply chains of customers and suppliers,” adds Polakoff. “Performing detailed supply chain audits, strategic network design, network optimization, and supply chain risk analysis can mitigate the potential that a business will be shut down or suffer a tremendous loss in profits.”