A recent article from ISM explored what changes the supply chain will have to make after the impact of Hurricans Helene and Milton. The author spoke with Sara Saberi, Ph.D., associate professor of operations and industrial engineering at Worcester Polytechnic Institute and Robert Handfield, Ph.D., director of the Poole College of Management Supply Chain Resource Cooperative at North Carolina State University.
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Here is an excerpt from the article.
Q: What are likely long-term impacts?
Handfield: It could take years to rebuild the infrastructure in Western North Carolina. Many people did not have flood insurance and have lost their homes.
Saberi: The long-term impact could include a reevaluation of geopolitical dependencies on certain materials, especially those sourced from vulnerable regions. Companies and countries may work to reduce reliance on foreign imports, such as critical minerals and electronics, to mitigate geopolitical risks in supply chains.
Additionally, there may be a focus on developing new designs that seek alternative materials, reducing dependence on scarce or geopolitically sensitive resources. For materials that do not have acceptable alternatives, companies may need to form strategic alliances with other regions to secure reliable supply chains. In tandem, there may be a shift toward more resilient and localized supply chains, where companies invest in local suppliers and manufacturing capabilities to reduce dependence on global networks. This shift would foster more sustainable and resilient supply chains, decreasing the risk of future disruptions.
Equally important is the role of automation in the future of port supply chains. By increasing automation, the impact of human-related challenges can be reduced, ensuring more consistent and efficient operations. To support this shift, educating the workforce for the future in areas such as automation, AI and cybersecurity will be essential.
However, automation requires substantial energy, which makes it crucial to explore alternative energy sources that reduce dependency on the grid. Amplifying the use of green energy sources, such as solar and wind, will help create a more sustainable and risk-averse system, further decreasing the reliance on foreign energy supplies and strengthening supply chain resilience.
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