http://www.big4.com/accenture/accenture-report-identifies-need-for-new-supply-chain-management?utm_source=twitterfeed&utm_medium=linkedin

Accenture and the World Economic Forum have reported a growing need for supply chain management policies due to growing concerns over security.

Over the last couple of years we have seen crises like the Japanese tsunami, the global recession, ongoing national security threats, and the Chinese earthquakes adversely impact labor, raw materials, and component supplies.

There are economic and efficiency reasons for why supply chains for certain raw materials, processes, and components will concentrate in certain countries.  However, efficiency and economic reasons are not sufficient to justify such a long term scenario.  Rather, it is important that industries of all types re-examine the need to diversify the supply chain.

The global economy would benefit from such diversification.  There would be short term pain while shifting a portion of chip manufacturing from Japan to Mexico.  Mexico is an untried location for chip manufacturing but that is not the point.  The Mexican government has expressed an interest in being a center for chip fabrication.

Another thought is to look to countries like Viet Nam for electronics manufacturing.   Basically, the business community needs to look at emerging economies as new centers of manufacturing.

I would even suggest going back to countries like Germany for steel making and the United States for electronics and other consumer goods.

The governments cannot order the changes in supply chain management. However, the business community can if it takes the bold step towards investing capital in new locations.  My proposal is an oversimplification of what needs to be done.  The bottom line; one more natural or manmade disaster and the business community will actually spend the money looking to diversify suppliers around the world.

The smart thing to do is to begin making changes in the supply chain now.  The food supply today is so diverse you can get fruit and vegetables of all kinds at anytime of the year because they are all grown in so many diffrerent countries.  Technology and equipment can and should be treated in the same manner.