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Intel Share Price Hit by Floods in Thailand

The news earlier this week that Intel sales this quarter will fall short of estimates provides a fascinating perspective on supply chain continuity.  Intel’s sales have not been hit by disruptions experienced directly by either a supplier or a customer; but a global shortage of hard disk drives, caused by damage to factories in Thailand, has caused Intel’s customers to reduce production and hence reduce their orders for Intel’s chips.

The BCI’s recent supply chain resilience survey highlights how commonplace supply chain disruptions are and also the various strategies that organisations are successfully employing to mitigate the risk.  But a situation such as Intel’s represents a new level of complexity in supply chain continuity and presents a significant new management challenge.