Supply Chain Risk Management

Emerging Risk Management Tools, Techniques, and Approaches • 231

Before proling the nancial impacts of the ood, let’s talk about the

back story. At some point multinational companies concluded, aer tak-

ing into account labor, taxes, freight, logistics, and government incentives,

that costs in ailand’s made it an appealing location. If someone had

taken the time to develop a complete supply chain map with a 100-mile

radius, he or she might have noticed that many suppliers, particularly in

the computer hard drive industry, were located in a 100-year ood plain.

Actually, some must have recognized this minor detail since some sup-

plier facil ...