Climate Change Adds to Supply Chain Complexity

This is an excerpt of the original article. It was written for the December 2015 edition of Supply Chain Management Review. The full article is available to current subscribers.

December 2015

It’s December, and time once again for our annual Executive Guide to Supply Chain Resources. This is a comprehensive guide to services, products, and educational opportunities targeted specifically to supply chain professionals. The editors at Supply Chain Management Review wish all of our readers a successful year to come.

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BSR (Business for Social Responsibility) is based in San Francisco—one of many port cities vulnerable to high seas and violent storms that may or may not be attributed to climate change. At this year’s annual conference, the need for supply chain resilience was addressed with passion by believers and skeptics alike.

A recent BSR report set the stage for these discussions, and deserves the attention of global supply chain managers and those who rely on their forecasts. Business in a Climate-Constrained World contains vital information on “catalyzing a climate-resilient future through the power of the private sector.” It also represents sound and measured reasoning.

Supply Chain Disruption
Beyond dispute is the fact that dramatic changes in climate pose severe challenges for modes in every transport sector. Analysts note that extreme heat, for example, will soften paved roads, requiring resurfacing with more durable materials. Frequent flooding will require diligent maintenance and investments in a higher, more expensive drainage standard. Bridges will be exposed to surges in water levels, requiring upgraded design specifications in new construction and retrofitting. Estimates range from $140 to $250 billion to adapt existing bridge infrastructure in the United States over the next 50 years.

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