Chronic disruption, a pervasive phenomenon referring to a persistent disruption that degrades but does not inhibit supply chain function and that does not respond to traditional remedies, affects manufacturing most, according to an APICs Supply Chain Council survey.

Top executives the world over spend a lot of time and effort to manage delays or disruptions in their companies' supply chains – with widely varying results.

As manufacturers seek to source quality goods at the lowest cost, supply chains that were once confined to a single country or continent have stretched around the world. Managers have become adept at addressing recurrent risks—frequent, low-impact incidents such as demand fluctuations or supply delays that affect efficiency. However, they have devoted less energy to designing supply chains that prevent or mitigate the impact of disruptive risks such as labor strikes, political unrest, regulatory shifts, and natural disasters. These events can have severe and lasting repercussions on operations, so manufacturers would do well to devise strategies that alleviate this risk.

Whereas business interruption insurance covers lost profits and continuing expenses as a result of physical damage to a policyholder's own facilities, contingent business interruption insurance covers such losses stemming from damage to the premises of a supplier or customer. Large companies typically have both types of insurance as part of their property insurance policies; smaller companies may not have the contingent business interruption extension.

An oil and gas company is installing a solution to locate personnel in the event of an emergency at its construction site in Newfoundland, Canada, using radio frequency identification technology provided by systems integrator Focus FS. The system consists of active RFID tags, readers, exciters and software from GuardRFID Solutions.