Systems and director of MIT’s Center for Transportation
and Logistics (CTL), in a Prep Talk at the Federal Emergency
Management Agency (FEMA), there are two ways to clas-
sify disruptions: “Think about the causes, which helps to
estimate … the likelihood of the disruption; and think
about the effects, or if something happens how bad will the
consequences be.”
Sheffi, an expert in systems optimization, risk analysis,
and supply chain management, suggests company leaders
use a heat map to categorize the potential of each disrup-
tion as well as the severity of the outcomes, then prioritize
preparations accordingly.
2. Develop scenario-based plans to mitigate consequences. Kathy Fulton, executive director of the American
Logistics Aid Network (ALAN), a humanitarian organization that provides supply chain assistance for disaster relief
organizations, has seen numerous supply chain disruptions.
She advises companies not to focus on the cause, but rather
to examine the effect when developing response strategies.
“For example, if a major storm blows through an area,
Then develop plans for alternatives, for dealing with scarce
resources, or for creating your own solutions.”
Operations that rely on shared services, such as public
warehousing, third-party logistics (3PL), and transportation common carriers, should have extensive discussions
with those partners—both about the company’s own resilience plans and about those of the service providers, adds
John Teixeira, senior vice president, custom retail distribution at Burris Logistics.
