China – The Nightmare Supply Chain Scenario
February 6th, 2012 at 16:01
Is China the next supply chain disaster in the making? North American companies are generally far more dependent on China as a supplier then they are Japan or Thailand. Yet should a calamity the magnitude of the earthquake and tsunami in Japan or the flooding affecting Thailand occur on the East Coast of China, 60 percent of that country’s economy is at risk; exposed as those production centers are to windstorm, earthquake and flood damage. Much of China’s East Coast industry is also located at or below sea level, adding to its vulnerability to flooding. There is also serious concern as to whether risk management in China is advanced enough to protect its manufacturers and their supply chains. Insured losses from the flooding in Thailand could double the $5 billion government estimate. And to date, 80 percent of the losses from natural disasters globally in 2011 have been registered in Asia Pacific. China, Asia’s largest economy, could very well be next in line for a major loss and supply chain disruption that would dwarf all previous disruptions. This Risk & Insurance® webinar will present new intelligence from FM Global senior vice president Ken Davey on supply chain exposures in China and include strategies from Georgia Tech operations management professor Vinod Singhal on ways to combat these exposures while creating buy-in from senior management.