The Resilience Of Energy Supply Chain

1588 Words Oct 18th, 2015 7 Pages
INTRODUCTION
In the era of globalisation supply chains are getting more lengthy and complex hence they are now more vulnerable to disruptions. The resilience of energy supply chain by Luca Urciuoli, Sangeeta Mohanty, Juha Hintsa and Else Gerine Boekesteijn Accepted on 24 September,2013 takes in account how various companies take preventions against supply chain disruptions or security threats and how they manage their supply chain in case a disruption occurs, it also exchanges views on European union support mechanisms and interactions with the oil and gas companies along with the improvements that can be made by the union in order to make supply chains more robust . In this essay I will discuss the reasons for which these disruption occur and their effects on a company 's along with the practicality of solutions provided in this article and various other feasible solutions possible in order to make the supply chain more robust and flexible.
SECTION 1
Disruption handling practicality
The article states that political instability gives rise to wars, terrorist attacks, riots, theft , sabotage and strike, it is suggested that companies should rely on suppliers in countries with stable politics and make use of portfolio diversification with short and long term contracts . The outcomes of a successful terror attack can be enormous effects like inflammation in oil prices and market fluctuation which will result in product shortage. It is impossible to protect oil while…
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