Mitigating Supply Chain Disruptions in Transportation due to Natural Disasters and Climatic Perturbations

Abstract

Companies have been facing potential devastating impacts from unexpected catastrophic events due to the increasing global supply chain complexity and international outsourced activities. The purpose of the thesis is to discuss and analyze how companies can prepare for the potential disruptions occurring in its supply chain due to the natural disasters and climatic perturbations as well as to present possible strategies for mitigating the impacts from the disruptions. The literature review provides possible proactive and reactive approaches for managing supply chain risks and a final framework of supply chain risk management. A case study of a company is conducted and analyzed under this framework to present first insights into the company’s supply chain risk management. The research further identifies practical risk assessment and treatment tools for managing catastrophic supply chain risks. It finally concludes with the possible strategies for companies to mitigate catastrophic risks in supply chain activities. Findings, conclusions and further recommendations are valuable for companies to further build up a robust supply chain in time of increasing trend of natural disasters and weather-relates catastrophes.

Master thesis in International Logistics and Crisis Management (Ecole de Management de Normandie, Le Havre, France) is written for the Master Degree in Science of Logistics and Transport Management at the School of Business, Economics and Law (University of Gothenburg, Sweden). Spring 2011