Above the Fold: Supply Chain Logistics News (October 18, 2024)

Maybe it’s my beard.

When I go through airport security now, those new cameras that take a photo of you and compare it to your license or passport photo, they don’t recognize me. The TSA agent tries two or three times and nothing.

But here is the kicker. The agent has to call a supervisor. One time I had to wait almost 10 minutes for one to arrive. What does the supervisor do? He looks at my license photo, looks at me, and then says, “Ok, you’re good.”

Why not just empower the agent to do the same? They have eyes and common sense too — you know, those tools we used for decades before this new technology was deployed.

The more advanced our technology becomes, the dumber we humans become.

Okay, rant over. Here is the supply chain and logistics news that caught my attention this week:

Lessons Not Learned: Why Supply Chain Mapping Matters

Did you know that 60% of the IV fluids for hospitals in the United States are produced at one facility in North Carolina?

Call me crazy, but this would have been a red flag to me if I was a procurement, supply chain, or risk management executive in the healthcare industry — especially after the shortages caused by the Covid pandemic when pharmaceutical and other medical products produced in China were halted.

As is often the case, if you don’t address (or perhaps, identify) a problem the first time around, chances are you’ll get burned again, which is what is happening now in the aftermath of Hurricane Helene.

“Disruptions from Hurricane Helene exacerbated shortages of critical intravenous fluids in the United States, and now the Biden administration has invoked the wartime powers of the Defense Production Act in the latest move to help speed recovery efforts,” reports Deidre McPhillips from CNN. Here are some excerpts from the article:

As the storm swept through western North Carolina last month, it severely affected operations at Baxter International’s North Cove production site, the largest manufacturer of IV fluids and dialysis solutions in the country. After a pause, Baxter resumed distribution of supplies – but with significant restrictions on the amount that could be ordered. Since last week, Baxter has expanded order capacity to up to 60% of typical volume for some of the most in-demand IV fluids.

But the strain persists. The US Food and Drug Administration has declared multiple shortages as a result, and hospitals have been rationing supplies – and postponing surgeries, in some cases – as the national supply chain continues to reel from the blow.

On Saturday, the US Centers for Disease Control and Prevention issued a health advisory about the shortages, warning health care providers that “the supply disruption may impact patient care and require adjustments to the clinical management of patients.”

Are you exposed to similar supply risks in your supply chain? Do you know where the manufacturing facilities of your suppliers (and their suppliers) are physically located? Which parts are manufactured at each location? Do you track the history and frequency of disruptions that occur at each facility and geographic region, due to either natural forces (hurricanes, floods, earthquakes, etc.) or other factors (labor strikes, power outages, quality issues, etc.)?

Unfortunately, many companies can’t answer those questions effectively because they haven’t adequately mapped their supply chain. This is a topic I’ve written about many times over the years, such as “Supply Chain Mapping (Insights From Indago)” and “Honeywell Investigated For Import/Export Controls: Why Supply Chain Mapping Matters.”

But don’t worry, if you don’t take action today, there is always another disruption down the road to wake you up.

And with that, have a meaningful weekend!

Song of the Week: “Run Your Mouth” by The Marías

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