Last week’s article, Stress Test for the Global Supply Chain, focused on how the tsunami in Japan affected Hewlett Packard’s (HP) global supply chain. HP’s computer industry, which depends on Japan for electronic parts and equipment, was hit hard when manufacturing plants shut down for days on end. A report by Zurich Insurance Ltd indicated that global supply chains faced over 2,500 disruptions in the last decade. Disruptions include natural disasters, labor strikes, lead time variability, fires etc. Research then led me to a fascinating report on how Somali piracy was disrupting and threatening supply chain security around the globe. In this week’s blog post, I have decided to focus on this unique problem and its effects on global supply chains.
Piracy in the global supply chain