Supply Chain Matters provides an update regarding our previously published supply chain disruption alert involving current flooding conditions in Thailand. 

A published report on Bernama, the Official News Agency of the Government of Malaysia, published late last week indicates that the flooding that has affected Thailand for a month now is estimated to cost economic damage of between 10-15 billion baht. It further reports that the damage could have been worse if it had affected Thailand’s industrial areas. However, the flooding did affect the entrances to some of those factory areas causing workers great difficulties in getting to work.

A syndicated Reuters report featured on the Chicago Tribune web site on Monday reports that 17 factories were temporarily shut on Monday at the Amata Nakorn Industrial Estate, dominated by foreign companies, after flood waters blocked nearby roads. As we pointed out in our earlier posting, this industrial complex houses a number of Japanese based producers within both automotive and high tech supply chains. In the latest Reuters report, a spokesperson for Amata Nakorn is quoted as indicating that the 17 factories were shut after the workers proved to be unable to reach them and the Thailand navy has been asked to help pump out the water. The estate was using more than 100 water pumps to speed drainage and the situation was reported to have improved from the weekend, with levels in many areas dropping 6 inches.  Likewise, flood waters in the remainder of the country have eased.

Thus, while it does not appear that the current flooding is in any way taking on the severity to what occurred in 2011, there are temporary interruptions of supply continuing as government agencies and industrial estate owners continue to work on clearing roads and industrial park entrances.

Procurement and supply chain planning teams can obviously breathe easier but should continue to monitor developments and plan for temporary disruption.