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.
Dai, T., & Tang, C. (2024, August 21). Natural Hazards and Supply Chain. Oxford Research Encyclopedia of Natural Hazard Science. Retrieved 9 Oct. 2024, from https://oxfordre.com/naturalhazardscience/view/10.1093/acrefore/9780199….