My lost SAAB
Business continuity
It’s not just SAAB that winds down, it’s also their supply chain and the network of suppliers and sub-suppliers who are wholly dependent on SAAB for their business. Do they have a continuity plan for a case like this? What about the local community and the city of Trollhättan where the plant is located, did they ever foresee this? A true Black Swan Event indeed. This reminds me of my job in the late 80s, when I was working with several regional government agencies in Norway, and where my job was to audit the risk assessment and disaster management plans of the local government authorities. The consequences of the closure of the cornerstone business was one of the scenarios we expected the communities to have plans for, but not on such a grand scale. According to Swedish media, the plant itself employs “only 3200” people, but the ripple-effect criss-crossing the now defunct supply chain will potentially affect 61,000 jobs all over Sweden. And how many jobs overseas? This calls for some serious business continuity plans and some serious resilience plans. Maybe Ken Simpson can help?
Resilient organisations
The New Zealand research project Resilient Organisations is another thing that comes to my mind here. Resilience is here viewed a 3-fold construct, working in a complex, dynamic and interconnected fashion depending on 1) keystone vulnerabilities, criticality and preparedness, 2) situation awareness, stemming from an assessment of the keystone vulnerabilities, and 3) adaptive capacity. Resilience, in essence, is the ability to survive disruptive changes despite severe impact. I can only hope that the businesses affected by SAAB’s demise are resilient enough to be able to survive and bounce back. It will be interesting to see…and it will be a great case study for supply chain risk researchers.
Links
- gm.com: SAAB sale cannot be concluded
- tu.no: GM legger ned SAAB
- tv2nyhetene.no: Legger ned SAAB
Related
- husdal.com: Brand reputation and supply chain risk