Plan Ahead For Brexit

Plan Ahead For Brexit

October 29, 2018

Brexit poses multiple challenges to supply chain management.  These challenges include changes to customs and tariffs, legal implications regarding contracts and intellectual property, lead times, and contractual incentives.

Firms that plan ahead with a variety of scenarios in mind stand the best chance of gaining first mover advantages as the new supply chains are put into place in the next six months.

This post is based on the Supply Chain Digital article, How can businesses prepare their supply chains for Brexit?, by Marcus Lawrence, October 11, 2018. Image source: Shutterstock / worradirek.

Discussion Questions:

1. How can firms subjected to Brexit in the United Kingdom maintain short lead times for imported inventory?

Guidance: Students should search the internet for articles about Brexit and the potential issues with imports/exports.  Students could then brainstorm in a class discussion about ways to maintain short lead times.  The discussion may include the idea of maintaining larger inventories in the UK or EU to overcome the delays caused by Brexit.

1. Will an efficient or a responsive supply chain potentially be impacted the worst in Brexit? Why?

Guidance: Review responsive and efficient supply chains.  Students should have a Continue reading

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Houston, We Have a Cargo Problem

Houston, We Have a Cargo Problem

October 9, 2017

Article Title: Harvey Blocks ‘Critical’ Point of Entry for Cargo

Authors of Article: Brian Baskin and Erica C. Phillips

Date of article: August 31, 2017

Source URL: https://www.wsj.com/articles/harvey-cripples-key-point-of-entry-for-cargo-1504126803 (link does not require a WSJ subscription)

This article illustrates the importance of disruption mitigations in supply chain management and just-in-time systems.

With the closure of Port Houston after Hurricane Harvey, large container ships and oil tankers are re-routed to as far as the Bahamas and Mexico.  Businesses that rely on these shipments are facing shortages of parts and goods.  The disruption’s ripple effects are impacting businesses that use Houston as their distribution center and companies that provide trucking services.

Discussion Questions
1. What are the impacts of shipping disruptions on supply chain management?

Guidance: The article provides examples of businesses and types of businesses that have been impacted. Can incorporate a discussion of JIT systems, and the risk this adds to the supply chain.

2. What actions can companies take to mitigate disruptions in their supply chain networks?

Guidance: Examples are given in the article, and can be used to start class discussion. Can discuss multiple sourcing strategies, and how logistics can mitigate or Continue reading

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