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– A NORWEGIAN PERSPECTIVE
Jan Husdal
ABSTRACT
How are the supply chains of companies located in sparse transportation networks
affected by transportation disruptions? What are typical disruptions in certain locations or
for certain types of business, and how do businesses and carriers counter supply chain
disruptions? A study commissioned by the Norwegian Public Roads Administration in
2008 investigated how companies located in sparse road networks are affected by and
relate to supply chain disruptions.
Figure 1 - Four categories of supply chains, based on transportation modes and links
Admittedly, this is a very crude classification scheme, since a “free” supply chain with all
modes available, but with capacity constraints on all or some of the links and/or modes is
no longer a true “free” supply chain. Capacity constraints, or cost constraints for that
matter, are thus factors that would turn a seemingly free supply chain into one of the
other types of supply chains.
The interviews also showed that the carriers were acutely aware of their important role in
the overall supply chain. Note here that while ferry links are perhaps a typical coastal
Norwegian problem, and most likely not found to this degree in many other countries, it
does show how all elements of the transportation network contribute to the overall
performance of the supply chain.
Particularly the two first answers were cited as the most important mitigative and
contingent measures vis-à-vis transportation disruptions. The last measure, “no
guarantees” was often used during winter, or when known road closures along the
normal route meant that the truck had to use an alternate route.
CONCLUSIONS:
With transportation networks being an integral part of supply chains, transportation
disruptions are in turn an integral part of supply chain disruptions. Preparing for
disruptions should therefore be an integral part of supply chain risk management. The
framework suggested here will hopefully contribute to that.
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