What Purchaser Should do in Thailand Flood Crisis : Supply Chain Affected

Mega Flood Crisis of Thailand in 2011 caused a great disaster similar as a loosed country in World War. Many Industrial Estates were destroyed, and the production, the purchasing, and the selling of the whole country were Illsฐo confused. Therefore, anybody who was not being directly as ooded victim had been effected as same as the indirect way which a great disaster would be also another affected cause. The loosing of millions of million bahts would be a nightmare which was hardly to forget.

The Insurance Journal, issue of 14 November 2011, contained an article about Flood in Thailand. It was indicated that this Mega Flood would be affected to the Global Supply Chain, for instance, the mouthwash factory in Thailand, which could be count as the important source of production in Asia region, when it was flooded, the Wal-Mart Department Store in Japan would be affected by the lacking of the mouthwash to be sold. For the hard-disc factory in Thailand which had been flooded, the production of computers was effected to worldwide in the first quarter of the year 2012. None the less, the 20% would be lost in businesses. That is to say, some industrial business, however, is not get the effected cause by flood, but it will be got by the Supply Chain affected. According to this magazine which indicates how to carry on nowadays business that must realize on the spreading of the Supply Chain to the different areas in order to reduce the risk of the business loosed when the nature disasters are occurred' such as flood and earthquake, which will be more often occurred. So, the source of Supply Chain may not be clustered at the same area.

My company is running on the Training Seminar Business. The head quarter is situated at Asoke Road where the Flood cannot be affected any more. My staff officers are not affected by Flood also. The hotel where the seminar is run will not be flooded. But my business has got the effect and trouble because many training courses which the customers apply for are mostly canceled due to the inconvenience coming from their homes. Therefore, the customers evacuate to the safety places for a while, but their mental healths are not properly to learn and are said to. be "Moody". No one intends to train for seminar. My income from the Training Seminar in October and November will disappear all at once.

For my information brochures which publicize for the new courses in December and January have been already printed by the printing house. But it cannot be delivered to me in time because of the flood that caused the car unable to enter or exit the company. So, I do not have any brochure for my customers. How my customers can know what and when my courses are managed for. It means that in December and January, my company will have no income, but I still pay the office rented and the salaries to my staff officers. That is to say, the only expenses consist of, but the incomes gain no any profit. These are the Supply Chain affected.

Another training company told me that he was quicker than me in sending his brochures to the customers. Whereas, all brochures were piled up as a hill at the Post Office, because the post men could not distribute to other areas, so this company would also be likely damaged as same as me. This was also the Supply Chain affected.

In the conclusion, the Mega Flood in Thailand caused many great disasters which were affected to both the internal country and the worldwide foreign countries. In such a huge damage, the purchasers might realize and prepare in mind that the tired working would be more after the flood reduced. These are the remarks or the consideration points which the purchasers ought to prepare earlier in order to help the company to carry on the business with the least of the problems.

1. To know that the customers may ask for the damages or the fine amounts for the merchandises that cannot be delivered to the customers. And we may ask for the damages or the fine amounts from the suppliers who cannot deliver the raw materials to us. Do not be frighten and rashly to do anything. If it is an uncontrollable cause (Force Majeure), the law indicates that the responsibility of anybody must not be accepted. You must consult with your Law Section and try to understand deeply about the uncontrol-lable cause that how the meaning it is. You must understand, this Mega Flood, some damage will be a scope of the uncontrollable cause which does not take the responsibility. But, something is not. You must find the knowledge first.

2. To contact and consult with the Account and Finance Section. In this crisis, our company has a problem in the circulated current cash on hand or not. It is a necessary thing to contact the suppliers in order to ask for the extension of the credit term or not. If the asking for the extension of the payment time, the trouble of the supplier must be responded. They may have the same trouble like us or not. For, they may cause by flood or the flood is not directly caused, but the indirect affected will be or not. Do not think to get. Doing business must think carefully and look forwards to the far distance and put yourself in their shoes too.

3. To check the suppliers. The purchaser must check every list of his suppliers. If some is troubled by flood, the checking of how the damages are caused more or less and how it will effect to the production, the delivery, and to forecast when it will turn to the usual situation.

4. To inspect the Upstream Chain. It is said to be that the suppliers of supplier must be checked in which the flood is caused or not. And it will cause the effected chain with any supplier. Foresee when it turns back to the usual situation.

5. The purchaser must gather the data of Pending Orders which are our order documents that has been issued, and the merchandises were not yet delivered to the customers. Even if the purchasing orders are in home country or foreign countries. To consider that we still want those merchandises according to the amount ordered or not. Or we want to reduce some amount. Or we ask to postpone the date of dispatching. Or we cancel all the orders.

6. The purchaser must join closely together with the Sale Section and Production Plan Section about the forecast of using figures and looks for what figures that must improve. Because our customers also have the same problems. So, our production and the Purchasing Plan Section must improve to change in time.

7. I can see that some company has rented a small meeting room, 40 square meters, in the hotel for the using as an office. Because, their company is also flooded. I can see both Thai and Japanese people, men and women, sit in the crowded room. Everybody uses computers, notebooks, and smart phones. They use all means of technology for their communication and run their business at one point while the flood is not reduced. As you are a purchaser, you must contact to find out about prices and expenses, and propose to our company for the establishment of a temporary office.

8. The purchaser who cannot enter the company because of the flood, and doesn't have a temporary office, do not be carelessly to trip around in the provinces. The using of all the communication technologies are required to consult with other Sections in the company in order to brain Strom for planning the works and prompt to jump to the air when the sky is clearly.

hope that the 8 subjects that are mentioned to be the consideration points that will light and increase the ideas for the purchaser who can show their skill, and concentrates to work when the company is in the difficult situation. It is more in precious than in the usual time. Under this crisis, the chance will always happen.