Thai Floods Force CEVA to Re-engineer Supply Chains

CEVA Logistics is working to re-engineer the supply chains of its automotive and hard disk drive customers because Thai floods have hindered operations or closed 46 of the logistics giant’s 48 facilities in greater Bangkok.

Bringing the flooded facilities back online will take months because not only does the water have to be removed, but also becuase it will take months to replace equipment at some sites, said Casey Fisher, CEVA’s executive vice president of Asia-Pacific. “Some of our customers’ facilities are still beneath two meters of water,” he said.

Many businesses expect the recovery from the flooding will last well into 2011. More than a month after the floods, Thailand's manufacturing and trade economy continues to be impacted by supply chain disruptions, raising questions about the practice of clustering suppliers in one area.

-- Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC