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Procurement, Are you Ready to Face the Wrath of Nature?

By Roshnee
In Procurement Technology
Apr 10th, 2014
0 Comments
40524 Views

It doesn’t matter which industry are you in, it doesn’t matter where the factories are located or how far the supply chain stretches because when nature strikes all the planning goes for a toss. In 2010, Russia suffered a severe heat wave. The resulting economic losses were estimated to be US$15bn.  According to a report from the Intergovernmental Panel on Climate Change global crop yields for maize, rice and wheat could be significantly affected by 2050 if nothing is done to tackle climate change.

Procurement Are you Ready to Face the Wrath of Nature

[Image source: ODF, Flickr]

Every year, government representatives from around the world meet at the UN Framework Convention on Climate Change (UNFCCC). They have agreed to limit the average global temperature rise to 2ºC, and identified actions to mitigate, and adapt to, climate change. However, with the increasing carbon emissions the 2ºC rise limit is difficult to maintain.

The impact of climate change is strongly felt by industries dependent on agriculture, mining, gas and petroleum. However, the erratic climate change also impacts the water level, thus posing a threat to all.

Even if the supplier strategy is to spread the supplier base across geographies, in this age of connectivity the impact is always global as shown in the below figure.

Global Adaptive Pressures

[Source: www.nature.com]

When planning the procurement strategy, how often do organizations take into consideration the negative impact of nature.

How can procurement arm itself better to face the wrath of nature?

 

About "" Has 160 Posts

Roshnee works with the content leadership team of Zycus. She regularly writes on procurement - trends and best practices, sometimes taking the off beat path to bring in a fresh perspective. She also drives the branding activities of her company. In her free time she enjoys hot cuppa coffee with the latest fiction book. She is an MBA in Marketing and a graduate in commerce.

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