Bindiya Vakil, CEO of risk management specialist Resilinc, on the importance of managing supply chain risk around disruption from extreme weather events
Whether it’s a blizzard that paralysis roads, intense gusts of wind that halt flights, or extreme heatwaves that buckle rail tracks, global extreme weather events are becoming all too common.
In 2022, Resilinc’s risk event monitoring platform, EventWatchAI, saw an increase of 36% year-on-year in the number of severe weather events. Moreover, extreme weather was the 11th highest reported global supply chain disruption last year.
While it’s impossible to predict exactly where and when extreme weather will strike, there are ways to prepare for its impact on the supply chain to minimise potential losses. Suggested steps to mitigate risk include storing additional inventory in other locations, having alternative distribution methods and, if possible, not relying on one site for high-risk parts, to name just a few.
In this article, I’ll outline some other ways in which businesses can weatherproof their supply chains to prepare for and mitigate the effects of extreme weather events.