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A disruptive event like a natural disaster can really have a lasting impact on the supply chain for quite some time.  If the affected Tier 1 or OEM is unable to quickly recover, company profits and overall marketshare may be at risk.  Weighing the possibility of a supply chain threat like a natural disaster may be one of the single most important steps to take when sourcing.

List of Natural Disasters and Impact on Supply Chain Health

2011 Tsunami disrupts automotive supply chain.  Impact was felt across major OEM brands, causing sales to suffer across the board.  Leading Japanese producers suffered a major hit, losing marketshare to other OEMs unaffected by the event.

2011 Plant fire leads to supply chain disruption of automotive components manufacturer.  Company experienced shortage of parts causing production delays across multiple automotive brands.

2000 Albuquerque fire prevents leading technology manufacturers from being able to produce key components for major telecom manufacturers.  Company uses cross-functional team to source the parts and components to other suppliers and successfully recovers from incident.

Dixien, LLC Emergency Production Recovery Support

Manufacturers can expect at least one significant natural disaster to occur each year.  While offshoring and local sources drive much of the debate on production recovery among leading manufacturers, experts continue to advocate developing a more robust supply chain network.  Dixien’s Production Recovery Team was developed to help manufacturers quickly react to natural disaster supply chain threats.  The team helps companies quickly recover, so that the impact from production delays and short shipping is minimal.  As an emergency production resource, we help OEMs protect their reputation and meet their customer expectations.

Dixien, LLC As an Emergency Supply Chain Resource

For years, Dixien has been manufacturing metal and plastic components for automotive companies and other industrial brands.  We’ve worked hard to develop a solid network of suppliers to ensure that we can meet our customer’s needs.  Focusing on tested sourcing strategies gives us access to reliable suppliers.  Our highly responsive team of suppliers placed in strategic locations prepares us for supply chain threats involving natural disasters.

According to a Global Supply Chain report, only 70 percent of companies have a detailed supply chain risk plan in place.  Out of all of the respondents who had a supply chain threat management plan, only half of them indicated that their plan factored in the possibility of a factory shutdown.  Dixien, LLC manufactures plastic and metal parts at two ISO-certified plants in Georgia.  Our team is happy to assist with reviewing your comprehensive list of production requirements in order to determine if we’d be a good fit for your network.

Visit our website to learn more, or contact us at (678) 259-9300 to learn more.

 

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