Tag Archives: indonesia

Supply Chain Risk and Vulnerability in Indonesia

Indonesia. 17000 islands spread over a distance of 6000 kilometres. Mega-cities and remote desolate villages side by side. Congested freeways and dirt roads just a short distance apart. Home to frequent earthquakes and volcano eruptions, mudslides and flooding in the rainy season. A logistical challenge for any supply chain, if not a logistical nightmare, and thus prone to supply chain disruptions. One would think that supply chain risk management would find fertile soil here, but does it? According to what Rofyanto Kurniawan and Suhaiza Zailani wrote in Supply Chain Vulnerability and Mitigation Strategy of the Manufacturing Firms in Indonesia: Manager’s Perspectives, Indonesia still has a long way to go.

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Humanitarian aid is better when decentralized

Humanitarian operations rely heavily on logistics in uncertain, risky, and urgent contexts, making them a very different field of application for supply chain management principles than that of traditional businesses. Decentralization, pre-positioning and pooling of relief items are key success factors for dramatic improvements in humanitarian operations  performance in disaster response and recovery. So say Aline Gatignon, Luk N van Wassenhove and Aurelie Charles in their newest article, The Yogyakarta earthquake: Humanitarian relief through IFRC’s decentralized supply chain. I believe they are right.

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