Extreme Weather Tops List of Supply Chain Risks in 2024
Extreme weather events are emerging as the foremost concern for supply chains in 2024, according to a report by Everstream Analytics. The report assigns a 100% risk score to the potential disruption caused by extreme weather, given the significant disruptions experienced in the previous year. Notable incidents include heavy rains and flooding affecting shipments in the Western U.S. and smoky conditions from Canadian wildfires delaying deliveries in Chicago and New York.
To mitigate weather-related risks, Everstream suggests monitoring routes for potential disruptions and utilizing predictive weather forecasts and alerts. Extreme weather also contributes to the fifth supply chain risk for 2024, which is the potential shortage of food commodities, particularly sugar, rubber, and fuel crops.
WHY IS THIS IMPORTANT FOR MY INDUSTRY?
Knowing this risk of nasty weather upfront lets us plan and prep, so we don't sweat the unexpected. We thrive on efficient routes, right? Being aware of potential weather curveballs means we can tweak our routes in advance, saving time and cash.
Bottom line, staying in the know about the top risks, especially extreme weather, is our bread and butter.
🔥 OUR HOT TAKE?
While extreme weather is a big worry for supply chains, calling it the top risk might be too simple. In a world full of tension, ups and downs in the economy, and tech hiccups, we've got to ask if the weather should be the boss of every move we make - literally.
Some say that issues on a global scale - such as trade spats and international drama - are really what can mess up supply chains real fast. Think sudden rule changes, taxes, or bans that hit our goods right away.
So, in the big picture, even though extreme weather matters, it might not always be the main troublemaker. We need to think about all kinds of problems and pick the ones that could hurt us the most, and then make a plan to deal with them. That's how we keep our supply chains strong.