In March 2011, the Fukushima disaster resulted in global supply disruptions of silicon wafers, automotive parts and other electronic assemblies. In February 2015, a structural fire destroyed the main plant at a GE Aviation facility located in Dowty in the UK. The facility was the sole manufacturer of propellers for Lockheed Martin’s C-130J aircraft. While we have all heard the saying “don’t put all of your eggs in one basket”, has your organization identified, documented, analyzed and prepared for a supply interruption, especially for parts from a single source of supply?
Howard A. Miller, L/B/W Insurance & Financial Services, Inc.
Being adaptable is the key to survival. Your ability to review and adapt to changing and emerging threats is critical to your long term success. The world changes and so does your business. This is why you need to review your risk management and insurance program every year. Has your business grown or contracted over the past year? Here are a few things to consider:
Howard A. Miller
In an effort to protect customers and end users, leadership in the electronic component industry has evolved from putting parts into the supply chain to determining if those components belong in the supply chain or whether they meet correct specifications. From an insurance and legal perspective this has expanded liability exposure for both distributors and manufacturers. As organizations evolve and grow, it is important to note that the risk management process is cyclical in nature. The first and most important step in the risk management process is identification. Taking the time to consider how your organizations operations have changed and where you’re headed needs to be reviewed at certain intervals. Failure to identify emerging exposures can lead to surprise lawsuits, finding out you are not covered by your insurance program and ultimately a financial loss that can destroy your organization.