News — Global supply chains that have worked for decades are struggling in the face of climate change. The companies that survive – and thrive – will be those that are well-prepared for both the sudden and the chronic impacts of climate change.
In early 2024, drought in Panama reduced shipping through the Panama Canal, while a lack of rainfall in Europe in 2023 made it hard for transport barges to move along the Rhine, a major artery for Germany and Western Europe. These are merely the first signs of global supply chain issues that will intensify as the climate warms.
Professor Katri Kauppi studies the effects of climate change on supply chains, and her research offers guidelines for making our supply system more resilient to the disruptions of a changing climate.
‘The impacts of climate change will progressively affect availability, price volatility and logistics routes. Companies must start considering alternate sources of supply and be able to assist their suppliers in preparing for impacts. The capability to assess water scarcity risks across supplier locations will become increasingly crucial, as will understanding which logistics hubs are most at risk of disruption.’
Background:
Professor Katri Kauppi leads research into global supply chain issues, examining how companies can be better prepared for both sudden and chronic disruptions.
Of particular interest is the concept of the “predictable surprise” – Kauppi and her team are preparing to conduct behavioural experiments to uncover biases that companies should factor into their risk analysis and impact preparedness.
Secondary data analysis is also underway, quantifying and analysing existing impacts on the supply chain.
Area of expertise:
- Impact of climate change on supply chains / climate change resilience in supply chains
- Procurement
- Supply chain risk management / sustainable supply chain management
- Climate change disruptions to global fashion supply chain
https://www.aalto.fi/en/people/katri-kauppi
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