Pressure is building on companies to disclose more information about their climate-related risks, but it remains to be seen whether such calls will actually pose a burden for more than a handful of isolated companies.
The transportation and warehousing industry suffered more than 95,000 industrial accidents and illnesses in 2014, according to the Bureau of Labor Statistics of the U.S. Department of Labor. That works out to 225 per 10,000 workers - one of the highest rates of any industry. Most estimates put the annual cost of workplace injuries at more than $50bn, so it makes sense from a business as well as a moral point of view to make safety a priority. The following are some proven ways to increase safety.
Research from the British Standards Institute (BSI) has found that global supply chains gained a combined $56bn in extra costs last year, incurred by crime, extreme weather, terrorist threats and the migrant crisis that swept across Europe.
From a purely business standpoint, considerations of where and how to build facilities (or alter existing ones) to lessen climate risk have moved up the risk management priority list. Such moves can ward off costly business stoppages in the event of extreme weather events. Perhaps more significant, on an ongoing basis, they also earn lower property insurance premiums.
Most of us take the weather report with a grain of salt. How many times has the meteorologist on the evening news told us that rain is coming later in the week, yet we find ourselves soaked to the skin by the time we get home from work the next day?
Analyst Insight: Top leadership involvement in governing IT risk strategies and identifying the right practices to manage those risks is a requirement for any organization looking to have effective supply chain security. Today's IT landscape requires an accelerated level of knowledge sharing of IT risk practices and solutions, both with suppliers and within the enterprise. Leaders have to change how information is communicated and shared throughout the organization. - Andrea Stroud, research program manager, APQC
Back in 2013, Flextronics, a $30bn manufacturer and services organization, talked about its slant towards supply chain risk through constant improvement in supply chain visibility, agility and control. Flextronics defined visibility as "the ability of all members of a chain to see from one end of the pipeline to another" and control as "the ability to respond to disturbances in a timely manner with effective actions." - Gregory L. Schlegel CPIM, CSP, Jonah, Founder, The Supply Chain Risk Management Consortium, Executive in Residence and Adjunct Professor, Supply Chain Risk Management, Lehigh University