Top ten threats to logistics: Infrastructure

Top ten threats to logistics: Infrastructure

Continuing with our ‘top 10 biggest threats to logistics’ as given by industry experts, this week we’re looking at infrastructure. 

During the Supply Chain Risk Management and Mitigation Workshop F&L Conference in Gothenburg in May last year, the audience were asked from their own business perspective, what they thought were the biggest threats to the supply chain. 

Infrastructure

Good infrastructure is vital for an efficient operation; this means good internal infrastructure as well as a choice of transport routes and modes dependant on the scale of the operation or the availability of additional capacity should business expand, or additional products be added to the portfolio.

Internal investment in infrastructure projects will have benefits in efficiency and security. Good planning will always bring benefit in more than one business area.

Business locations cannot always be based on the infrastructure in place or planned. The ability to influence future planning will depend on the size of the company and the economic benefit it brings to the area or, on a smaller scale, the willingness to engage in local business partnerships or join organisations that can act with a stronger voice and greater influence through the strength of its membership.

Delays

Good infrastructure furthermore can allow planning for certain delays. However, some delays are inevitable and often out-with the control of a company. Focusing purely on the supply chain, the impact of delays can be minimised in a variety of ways.

If there are short delays in the delivery of supplies used in the manufacture process, companies can choose to have a limited supply of ingredients or components to ensure continued production or have an alternative source for use in such circumstances.

Delays in delivery of finished goods can be more impactive as customers can also find alternative suppliers resulting in a potentially permanent loss of business or damaging the image of a brand. Business continuity plans can reduce the impact of delays in the logistics side of the business and these should be tested regularly to ensure suitability and effectiveness.

Where longer term delays are involved or disruption is due to planned activities such as strikes, companies need to be able to react and build this into delivery schedules or find alternatives routes and/or modes to circumvent the problem.

 

Top Ten Threats to Logistics

Threat 1 – Insider Threat

Threat 2 - Theft

Threat 3 – Unexpected Incidents

Threat 4 – Terrorism

Threat 5 - Reputational Damage 

Threat 6 - Capacity 

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