“Generational Memory Threshold” May Influence Site Selection
Companies should sharpen their focus on water management, i.e., diverting water from property, optimizing drainage and protecting water supplies, and consider new weather extremes when managing supply chains.
Latest News
Are Your Data Visualizations Readable by Everyone? Supply Chains Facing New Pressures as Companies Seek Cost Savings February retail sales see annual and sequential gains, reports Commerce and NRF A Hoarding Explanation for the Post-COVID Inflation for Goods Digital Approaches, End-to-End Thinking Help Supply Chains Evolve More NewsLatest Resource
Vendor Evaluation Questionnaire for RFPs Don't miss out on the perfect Yard and Dock management software for your warehouse operations. Save time and stress with this handy Toolkit.All Resources
As noted in our news section, extreme wet or dry conditions can affect buildings, machinery, data centers, transportation networks, supply chains, people and sales.
When companies have a choice, the experts advise, they should site their facilities in nothing less than 500-year flood zones (where there’s only a 1-in-500 chance of a flood every year).
Companies should sharpen their focus on water management, i.e., diverting water from property, optimizing drainage and protecting water supplies, and consider new weather extremes when managing supply chains.
The white paper warns businesses of psychological obstacles to preparation. One is “generational memory threshold,” where a community’s collective memory is too short to remember major disasters such as an earlier 1-in-500-year hurricane.
Another obstacle is heedlessness. In earlier FM Global research, 96 percent of financial executives surveyed said their companies had operations that were exposed to natural catastrophes like hurricanes, flood and earthquakes; yet fewer than 20 percent said their organizations were “very concerned” about such disasters hurting the bottom line.
“As an engineering-driven property insurer, we collaborated with leading experts in atmospheric science to understand in great detail the effect of climate change on precipitation,” said Louis A. Gritzo, Ph.D., vice president, manager of research at FM Global. “We very much hope that business leaders will use this white paper to continually enhance their resilience by preparing their property for whatever precipitation extremes they are likely to experience.”
About the Author
Patrick Burnson, Executive Editor Mr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].Subscribe to Supply Chain Management Review Magazine!
Subscribe today. Don't Miss Out!Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
It’s high time to go beyond visibility Driving supply chain flexibility in an uncertain and volatile world View More From this Issue