Title: 5 Primary Causes of Supply Chain Disruptions
Headings: 5 Primary Causes of Supply Chain Disruptions
5 Primary Causes of Supply Chain Disruptions
1). Inefficient response to technology trends
2). Natural or environmental occurrences
3). Inaccurate planning and forecasting
4). Shifts in governmental regulations
5). Fluctuations in transport costs

Content: 5 Primary Causes of Supply Chain Disruptions
5 Primary Causes of Supply Chain Disruptions
Posted by Nick Ostdick on August 17, 2017
If there’s one fear shared by nearly all manufacturing supply chain planners and managers, it’s disruption. Small or large-scale breakdowns in the movement and flow of products or component parts from Point A to Point B. Every year, manufacturing companies dedicate thousands of man hours and resources to avoiding supply chain disruptions in an effort to maintain productivity, reliability, and on-time delivery for customers. But even with the amount of time and effort manufacturers put into combating the potential for disruptions, the nature of a global supply chain is that disruptions will happen at some point along a company’s value chain, and what will determine a company’s resiliency is how said company responds and adjusts to these disruptions. No matter the size or impact of the disruption, the ability to react and correct disruptions at the production, inventory, or transportation level depends largely on understanding the kinds of disruptions and how at-risk a manufacturing company is to experiencing each type. Given the interconnected nature of today’s global supply chain and expansive network of production facilities, warehouses, and transportation hubs, it would appear there is more opportunity than ever before for manufacturing companies to encounter disruptions or breakdowns at more touch points across their supply network. Whether the risks are internal (contained within a company’s operational walls and subject to mitigation by planners and managers) or external (factors outside a company’s control that can be difficult to properly prepare for, such as efficiency issues with suppliers or partners), let’s examine the five primary causes of supply chain disruption and what manufacturing companies should be aware of in addressing these risks. 1). Inefficient response to technology trends
We’ve discussed at length in previous posts the need for manufacturing companies, suppliers, and other critical players in the automotive supply chain to ditch manual or Excel-based methods of demand planning, data analysis, and forecasting for integrated, intelligent planning software solutions. In an age when E2E visibility, transparency, and agility are key drivers in creating a lean, responsive supply stream, concepts like Industry 4.0, Big Data, The Internet of Things, and others are crucial to a company’s success in a worldwide production network. Today’s biggest technology trends, particularly in planning and production allocation such as Plan for Every Part and Every Part Every Interval, allow planners to view the entire supply situation and ensure the efficiency of production programs for on-time delivery and enhanced customer satisfaction.