Shedding light on how easily the consumer market at the global scale is affected from the damage of disasters

Disaster-Risks

Masahiko Haraguchi, a Ph.D. student in Earth and Environmental Engineering, presented a poster titled ‘Disaster Risks and Impacts on Supply Chains: Vulnerability Assessment of Supply Chains and Future Research Questions for the Resilient Supply Chains – Case Study of 2011 Thai Floods’ at the Health and Humanitarian Logistics Conference 2013 held in Kuala Lumpur, Malaysia. The study uses the Thailand flood of 2011 to investigate the impact of floods on the global economy through supply chains, and to propose what components should be considered to measure supply chain risk.

The study examines, in particular, Thailand’s 2011 flood as the most notable example of the impact of floods both on industries and the whole economy. Since the prolonged floods affected Thailand’s industrial sectors, especially the automotive and electronics industries, the research team discovered that the impact of natural hazards on supply chains is increasing. Dependence on one supplier leaves ‘downstream’ firms exposed to more risk in a disaster. The impact on each firm that is exposed, however, varies depending on its access to alternative suppliers and how well it has prepared. Designing supply chains in a more resilient way will ultimately reduce risks to the economy.

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