In an era of unprecedented climate change, weather-related supply chain disruptions are no longer occasional hiccups. They’re an ongoing challenge. Extreme weather events and scarce resources regularly impact prices and supply levels. However, climate-resilient supply chains are still possible with adaptive logistics systems that optimize visibility and prioritize risk management.
Minimize the human toll of climate change
Climate change-induced weather events displace and endanger workers worldwide. Warehouses, factories, farms, and fisheries are increasingly vulnerable. Rising sea levels disrupt accessibility to airports and seaports, creating delays and unsafe worker conditions.
Wage adjustments are often necessary to retain a workforce willing to face these risks. For example, UPS workers recently approved salary increases for drivers and air-conditioned trucks to combat rising temperature extremes. Accommodations like this effectively incentivize workers, but such adjustments can inadvertently lead to price inflation.
When adapting to a tighter budget, it’s crucial to streamline logistics management and develop a strategy to make operational adjustments. CTSI-Global’s dedicated 3PL team helps clients manage claims, report data, and find the most cost-effective transportation option for every shipment. More efficient logistics processes translate to significant savings and top-tier service.
Understand how climate disasters affect supply chains
Frequent wildfires, hurricanes, floods, and droughts diminish renewable resources and supply levels, particularly in the agriculture, fishing, and lumber industries. And when demand remains unchanged, suppliers often raise prices. For example, droughts in Brazil doubled coffee prices in 2021, impacting the commodity, retail, restaurant, and shipping industries.
Additionally, fossil fuel costs continue to rise, compounding climate change challenges. However, flexible routing adjustments can reduce reliance on these resources—and shipment consolidation and routing optimization help offset fuel costs.
CTSI-Global’s Honeybee TMS makes these efficiencies possible through pooling, intelligent process automation, and multi-stop routing, reducing delays, shipping costs, and customer frustration.
Weather the storm with collective action
Transportation and manufacturing leave a significant carbon footprint, but investing in low-emission fuels and alternative energy sources is a proactive step that should be top of mind for leaders in every sector to minimize future disruptions.
For example, the International Maritime Organization aims to cut emissions by 50% by 2050, focusing on wind and solar power. Likewise, states like California have introduced legislation to invest in green trucking and phase out diesel trucks. As a result of efforts like this, the U.S. Department of Energy (DOE) projects that by 2030, zero-emissions trucks will be cheaper to purchase and maintain than diesel trucks.
Resource conservation is a fundamental action that’s within reach of all companies, regardless of the size of their carbon footprint. Supply chain leaders can spearhead these efforts by advocating for investments and engaging with governments to prioritize and accelerate the transition to green energy.
Build climate-resilient supply chains with a TMS
Various strategies for cultivating climate-resilient supply chains include stockpiling supplies, rerouting cargo, and nurturing carrier relationships. Visibility and management tools like the Honeybee TMS bolster these solutions. With access to advanced predictive analytics, load optimization features, and over 20,000 carriers, Honeybee provides tools to monitor risks and respond effectively to emergencies.
An era of climate change disruptions demands adaptability across global supply chains. By investing in green initiatives, conserving resources, and leveraging advanced management tools, firms can maintain momentum in the face of climate challenges.
Now is the time to fortify your supply chains. Contact us to discuss your company’s climate change resilience plan.
