Water-related damage an increasing supply chain risk

Add water to the list of things most supply chain managers probably don't worry about but should.

Two-thirds (66 percent) of the 190 organizations that were studied for the second annual CDP Water Disclosure Global Report issued by the Carbon Disclosure Project (CDP) said exposure to water-related risk could have a potential impact on their supply chains in the next five years. One-third of the respondents, in fact, said their companies have already suffered water-related business impacts. Water-related business impacts include disruptions to operations from severe weather events like floods or water shortages.

The CDP noted that in 2011, some of the worst droughts in decades have hit regions of China, East Africa, the Middle East, and the United States. Recent flooding has inundated Thailand, while Queensland, Australia, earlier this year had its prolonged drought alleviated by once-in-100-years floods.