ASIDE FROM FARMERS AND WATER-BORNE transportation, drought rarly is considered a risk.
That is a mistake many manufacturers commonly make.
Floods, inclimate weather are the “usual weather suspects.” Rarely drought.
ACCORDING TO THE LOCAL a German media company1, Months of drought have left water levels on Germany's Rhine river at a record low, exposing a World War II bomb and forcing ship operators to halt services to prevent vessels from running aground.
That only effects Germany. Right?
Not if a company elsewhere imports German, Swiss, Dutch, or French products for use in its product. The Rhine touches them all.2.
A drought has lowered the water level on the Rhine to the point where most river traffic has been stopped; boat owners fear their vessels will run aground even in mid-stream.
The Rhine is one of thousands of rivers in countries around the globe whose traffic is weather dependent. Too much water coming into the river – snow melt, heavy rains – and the waters are too dangerous for many boats.
Too little rain and the tributaries dry up and the river follows suit.
Either way, too much water or too little water, and river transportation is halted.
Granted, when a normally navigable waterway is too high or too low – or frozen solid – there are other transportation options, but all come at a price.
Railroads may not offer door-to-door freight pick up and delivery. Railroads are the most cost effective way to move materials after waterways. Usually rail transportation, especially outside of the United States, is faster than waterway transport.
Trucks can provide door-to-door service. They are faster than waterborne transportation, but more expensive. They also are far less energy efficient and produce more negative impact on the environment than either rail or waterborne carriers.
Lastly, there is airborne transportation. Fast, expensive, and requires land transport from airport to facility.
While drought may not be at the top of an organizations risk list, practitioners need to keep it in mind as they examine ALL the risks to an organization’s input (raw materials) and output (manufactured goods).
Too little water (drought) and too much water (floods) can play havoc with an organization’s bottom line.
Sources
1. http://tinyurl.com/y72h4vyt
2. https://en.wikipedia.org/wiki/Rhine
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