Supply chain disruptions arise following floods in ThailandFlooding near Thailand's capital city of Bangkok has taken a significant toll on the local area, in addition to causing supply chain disruptions for companies around the world, the Wall Street Journal reports.

According to the news source, at least 281 people have been killed in flooding-related incidents since July. Bangkok could soon be in particular danger, as the combination of seasonal high tides and run-off from flood-damaged areas in the north could cause serious problems.

Sundi Aiyer, Asia Operations Practice Expert at consultancy McKinsey & Co., told the Journal that many companies have been forced to come up with backup plans in case their suppliers are ultimately impacted by the flooding.

"Automotive and industrial manufacturers, electronics and high-tech product companies are especially vulnerable to the supply chain disruptions we are now seeing," Aiyer explained.

MarketWatch reports that as a result of the severe flooding, Honda Motor Co. is contemplating potential supply chain changes and has already decided to temporarily shut down its operations at its motorcycle and automobile plants in Thailand.  
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  1. Hope that other companies have in place some sort of supplier risk management and there's no repeat of the situation in Japan early this year.

    During the Japan earthquake many companies were caught by surprise and only 1 or 2 months later found out that the supplier on the 3rd level down the chain could not deliver.

    Again these disasters should wake up many companies to have a back up in plan in the first place, NOT to come up with a back up plan after the disaster/flooding.