Natural Hazards and Supply Chain
Natural Hazards and Supply Chain
- Tinglong DaiTinglong DaiJohns Hopkins University, Carey Business School
- , and Christopher S. TangChristopher S. TangUCLA Anderson School of Management
Summary
The relationship between natural hazards and supply chain operations is bidirectional: Natural hazards can disrupt supply chain operations, and supply chain operations can influence the causes of natural hazards. The former motivates us to discuss four key steps for managing supply chain risk in the presence of these hazards: (a) identifying risk, (b) assessing risk, (c) mitigating risk, and (d) responding to risk events. The latter prompts us to examine how the environmental, social, and governance movement—a set of standards and practices aimed at creating positive social and environmental impacts—can prompt companies to rethink their supply chain operations to reduce emissions, mitigate the human impact of natural disasters, and mobilize their supply chain partners to combat climate change. Developing supply chains that are resilient to natural hazards requires a collective and collaborative effort among all stakeholders.
Subjects
- Mitigation
- Resilience
- Risk Management
