Below follows only "one impact of one of the impacts" described above and therefore probably only a small sub-plot in the overall story but it's still going to cost plenty of people plenty of money. Supply chains are only one of many things being threatened by the impacts of climate change and here in Asia the typhoons, the storms and the hurricanes are definitely on the increase and far stronger than before:
" It is some of Asia’s most important manufacturing centres that are going to be at risk. Across Southern China, the Philippines, Japan and along the long coastline of Vietnam, for example, we are likely to see significant risks to the supply chains of large companies. India, Bangladesh and Myanmar are at risk as well."
"Companies with supply chains in Asia need to start thinking about three issues:
1. Supply chain resilience: Ways in which outsourced manufacturers can be helped to prepared for climate related disasters and make their facilities more robust and less susceptible to storms and water inundation.
2. Business continuity planning: In the event of a major climate related disaster, companies will need to think about how they can prepare for recovery in a fast and efficient way that reduces supply chain disruptions.
3. Relocations and diversification of supply chains: Moving out of some of the highest risks areas is likely to be needed in worst cases. In addition, companies will need to make sure that they are not sourcing exclusively from one area in order to reduce the regional dependencies that can increase supply chain disruption risks.
ALL OF THE ABOVE things of course EASIER SAID THAN DONE and cost plenty of money and require plenty of effort and energy and the costs will of course be duly passed on.
But maybe localization instead of globalization will start to have greater and greater incentives? In any case certainly a changing world.
Below follows only "one impact of one of the impacts" described above and therefore probably only a small sub-plot in the overall story but it's still going to cost plenty of people plenty of money. Supply chains are only one of many things being threatened by the impacts of climate change and here in Asia the typhoons, the storms and the hurricanes are definitely on the increase and far stronger than before:
ReplyDeletehttp://csr-asia.com/weekly_news_detail.php?id=12278
" It is some of Asia’s most important manufacturing centres that are going to be at risk. Across Southern China, the Philippines, Japan and along the long coastline of Vietnam, for example, we are likely to see significant risks to the supply chains of large companies. India, Bangladesh and Myanmar are at risk as well."
"Companies with supply chains in Asia need to start thinking about three issues:
1. Supply chain resilience: Ways in which outsourced manufacturers can be helped to prepared for climate related disasters and make their facilities more robust and less susceptible to storms and water inundation.
2. Business continuity planning: In the event of a major climate related disaster, companies will need to think about how they can prepare for recovery in a fast and efficient way that reduces supply chain disruptions.
3. Relocations and diversification of supply chains: Moving out of some of the highest risks areas is likely to be needed in worst cases. In addition, companies will need to make sure that they are not sourcing exclusively from one area in order to reduce the regional dependencies that can increase supply chain disruption risks.
ALL OF THE ABOVE things of course EASIER SAID THAN DONE and cost plenty of money and require plenty of effort and energy and the costs will of course be duly passed on.
But maybe localization instead of globalization will start to have greater and greater incentives? In any case certainly a changing world.