the article talks about natural disaster effecting the supply chains and emphasis on the two very famous natural disaster which took place in japan (earthquake)and thiland (tsunami).


Navyanshi Agarwal


Aakriti Club, JIMS VK

a year ago | 4 min read


Disaster is described as a significant disruption to society that results in human casualties, material loss, or environmental harm that cannot be repaired by local communities using their own resources . The Centrefor Research on the Epidemiology of Disasters (CRED) defines a disaster as anoccurrence that prohibits the continuation of normal activities in a region,necessitates outside aid, and results in significant loss of life and property(. According to ADSR (2013) and Van Wassenhove (2006), natural disasters arecaused by geographic, meteorological, climatic, hydrological, and biological(epidemic) occurrences. They can be categorised according to their onset timeas slow or sudden events. 

It is impossible to ignore the effects of a disaster on the conomy. The local infrastructure and buildings may be damaged, or there may be unintended consequences like job losses and revenue losses . 250 millionpeople are impacted by catastrophes annually, according to the International Federation of Red Cross and Red Crescent Societies (IFRC 2014). Unfortunately,the impact of disasters on human life and various supply chains might increasein the upcoming years due to population expansion and other external causes.Disasters present a number of obstacles to the business environment due to thehigh level of urgency and uncertainty, including pre-positioning of inventories, quick reaction, efficient procurement, and efficient administration of donations.

Natural catastrophes like the earthquakes and hurricanes that occurred in China, Thailand, and Japan had an impact on both people's lives andglobal commerce. The circulatory system of each business is its supply chain .It connects an organization's manufacturing and distribution divisions to therest of the globe. Every business aims to enhance its supply chain in this era of globalisation in order to benefit from the abundant resources.

The supply chain makes it easier to carve out a niche in the global market and cut production expenses. After being affected by natural disasters in recent years, the majority of businesses have found themselves interrible situations. Because of how efficient and integrated their supply networks are, many businesses are impacted by natural disasters. The entire supply chain is disrupted even little .

Businesses and industries should have plans and consider issues that go beyond everyday challenges and earnings. Additionally, theyshould plan to lessen supply chain risk. Businesses should consider otherfactors besides efficiency because efficiency increases susceptibility.

Many companies have anchored their supply chains in nations like Thailand and Japan. The two nations have also been particularly hard hit by natural disasters that have a negative impact on many international businesses.

Japan produces chemicals and other goods for the globalmarket in addition to providing automotive spare parts to the majority of motorcompanies. The great east Japan earthquake, knowninternationally, struck Japan in 2011. The earthquake had serious impacts onsupply chains and the global economy.

Thailand, on the other hand, is a significant provider of electronic devices and auto parts to numerous nations. Thailand experienced torrential rains in 2011 that severely damaged the nation's infrastructure.This natural calamity has a significant impact on the nation's supply system .The floods caused a large number of businesses to shut down. The two examplesare essential for demonstrating how natural disasters affect supply chains around the world.

The Great East Japan Earthquake

A tsunami was produced by the earthquake in March 2011. Over$200 billion is lost to Japan as a result of the tsunami. Nothing could besaved after the destruction of the manufacturing facilities. A power loss resulted from the meltdown at the Fukushima nuclear power plant.

As a result, corporations found it challenging to manage both their supply networks and production processes. Due to inadequate transportation systems, businesses found it difficult to supply their products.Additionally, a shortage of electricity prevented companies with electronic supply systems from tracking their items.

Aside from the industrial firms, other businesses that depend on Japan for the supply of raw materials were also impacted by the earthquake. Customers of Japanese goods were not excluded in developing nations. It was challenging for Japanese businesses to supply there products to global market.

The catastrophe had an impact on both the worldwide labour market and economy . Companies suffered enormous losses as a result of the incident. Additionally, it made businesses aware of how susceptible their supply lines were to disasters.

The Thailand Floods

Major floods struck Thailand during the months of June and December of that year. It was challenging for manufacturing enterprises to carry on with their operations due to the floods.

Supply chains in Thailand were impacted. The transportation network was devastated by the floods, making it challenging for businesses todistribute their goods. Additionally, it was impossible for manufacturing firmsto transfer raw materials from the source to their facilities.


Businesses ought to review their supply chain policies andstay away from centralised systems. The majority of supply chains used by multinational corporations are weak and vulnerable to natural disasters. The catastrophes in Japan and Thailand ought to serve as good examples. Businesses should reflect on their mistakes and prepare their supply chains for all potential outcomes.

They should also consider their companies' futures anddevise ways to lessen the impact of supply chain interruption. Companies should invest in excellent supply chain protection techniques if they want to takefull advantage of the global market. The fact that natural disasters are unpredictable means that having a consolidated manufacturing scale is not a viable solution.


Created by

Navyanshi Agarwal


Aakriti Club, JIMS VK







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