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Potential pandemic impacts on just-in-time logistics highlighted

Get free weekly news by e-mailThe just-in-time global delivery system, now a hallmark of the world's economy, exposes companies to potentially crippling consequences when the next ‘flu pandemic strikes, according to Michael Osterholm, PhD, associate director of the Department of Homeland Security's National Center for Food Protection and Defense.

Osterholm, who spoke at ORC Worldwide's recent Occupational Safety and Health Physicians Meeting in Washington, D.C., warned company health professionals that preparation now is critical because a flu pandemic is certain to occur, sooner or later.

"It's not a question of 'if,' but of 'when,'" Osterholm asserted. "Pandemics are like earthquakes, hurricanes and Tsunamis - they occur." While the dangers of an imminent ‘flu pandemic are real, he cautioned it is impossible to foresee whether the avian influenza strain currently circling the globe will mutate into a source of infection for humans.

Osterholm outlined the following scenario in the event of a global flu pandemic:

* The US healthcare system will be overwhelmed almost immediately;

* Government services such as garbage collection, police protection, and even some local water supplies, are likely to be disrupted.

* The global economy would grind to a standstill as many employees do not show up for work, borders are closed and the transportation system shuts down.

Because many companies have reduced expenses by relying on the immediate delivery of raw materials, often from far away places, the economic consequences of a pandemic are likely to be immediate, profound and worldwide, says Osterholm. "The just-in-time global delivery system has cut the costs of world trade," said Osterholm, "but there's a price to pay for this - and we'll pay for it in the event of a global pandemic."

As a result, Osterholm advised attendees to attend carefully to logistics and supply chain issues within pandemic aspects of business continuity plans.

http://www.cidrap.umn.edu

Date: 9th Feb 2006• Region: US / World Type: Article •Topic: BC general
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