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BP Oil Spill: Its impact on the Supply Chain Industry

BP Oil Spill: Its impact on the Supply Chain Industry
Currently, BP is testing a containment cap that should stop the flow of oil from its blown-out well. Although, the containment cap may not capture every last drop of oil, installing it is very necessary in order to prepare for a demanding hurricane season in the Gulf of Mexico. Furthermore, the National Oceanic and Atmospheric Administration stated that this could in fact be one of the worst hurricane seasons on record.

It is also important to note that the BP oil spill has implications for the supplier as well as risk management industry, that only time will tell. The world has a kept watchful eye on BP, due to the anguish caused by the spill to regional and local food and catering supply chains. A quiet uprising has been growing amongst these industries, which in turn, could well become the next stick with which to beat BP.

According to the National Oceanic and Atmospheric Administration, 32.5 percent of the Gulf fishery is closed due to concerns over contamination from the BP oil spill. For instance, Chef Susan Spicer, a judge on TV show “Top Chef”, has even sued BP for damages to restaurants that can’t access their supplies of fresh seafood. The oil spill has not yet reached the South Atlantic Coast, however, wholesalers are fearing the worst.

Overall, BP's oil spill calamity has affected the tourism, real estate, restaurant, coastal fishing as well as the oil industries. This in turn, brings to light the fact that there is always room to improve the supplier and risk oversight and management.