I wrote this article a year ago in the context of manufacturing disruptions, but the principles apply no matter what the cause (wars included).
1) Design your supply chain with geographic diversification in mind. You don’t want most or all of your production or distribution capacity tied up in one facility, or a few facilities in close proximity to one another. That opens them up to correlated risk factors (weather, labor strikes, civil unrest, etc.)
2) Geographic diversification can, potentially, cost more in operating expense than geographic concentration. While it’s not always possible to quantify cost-savings associated with risk avoidance, it is a real benefit.
3) Supply chain network design + network simulation allows you to craft a supply chain based upon guiding principles and KPIs, then “wargame” potential outcomes for more robust decision-making. Our team at Data Driven Supply Chain has done this for clients across multiple sectors. Reach out to discuss further!
Geographic Diversification in Manufacturing: A Risk Management Imperative (Read Full Article Here)