Supply Chain Management under the Threat of International Terrorism

• Published in: The international journal of logistics management Vol. 12; no. 2; pp. 1 - 11
• Main Author: Sheffi, Yossi
• Format: Journal Article
• Language: English
• Published: Ponte Vedra Beach MCB UP Ltd 01-07-2001; Emerald Group Publishing Limited
• Subjects: Contingency planning; Costs; Electronic procurement; Inventory; Inventory management; Logistics; Manufacturers; Manufacturing; Medical equipment; Product life cycle; Security; Security management; September 11 terrorist attacks-2001; Supplier relations; Suppliers; Supply chains; Supplychain management; Terrorism; Traffic congestion; Uncertainty; Uncertainty; Terrorism; Security; Inventory; Supplier relations; Supply‐chain management
• ISSN: 0957-4093; 1758-6550
• DOI: 10.1108/09574090110806262

On the morning of September 11th, 2001, the United States and the Western world entered into a new era ‐ one in which large scale terrorist acts are to be expected. The impacts of the new era will challenge supply chain managers to adjust relations with suppliers and customers, contend with transportation difficulties and amend inventory management strategies. This paper looks at the twin corporate challenges of (i) preparing to deal with the aftermath of terrorist attacks and (ii) operating under heightened security. The first challenge involves setting certain operational redundancies. The second means less reliable lead times and less certain demand scenarios. In addition, the paper looks at how companies should organize to meet those challenges efficiently and suggests a new public‐private partnership. While the paper is focused on the US, it has worldwide implications.