Snow Tests Supply Chain Resilience in Asia

Tonight I enjoyed a nice Korean dinner in the heart of Korea Town in Tokyo. On the way out with my co-worker and his wife, we quickly realized it was snowing. Unlike other winters I remember in Tokyo, this is the first time I have seen it snow so regularly. On the way home, I had to trudge through the slush and thought not only of the effects on transportation but also on the markets that rely on milder Tokyo winters, such as the cold beverage industry. Being that my previous company specializes in domestic transportation for Coca-Cola products and raw materials, I have a feeling that this winter will slow inventory turnover further and result in lower revenues for both companies.

Of course, this is nothing compared to what has hit China, and the guys over at 3PLWire have a great post from last week to sum up the impact as it stands currently, and also provide some pointers on remaining resilient in the face of such adversity. It is always great insight to hear directly from the ground, so thanks to 3PLWire for passing on such communication.

As for whether this is a freak winter or not, I came across a post by the gents at Powerline regarding the topic of global warming, now often called global climate change as advocates of a more urgent response look to be hedging their bets on whether the weather will get warmer or colder. As Powerline points out, we may be seeing a cooling that is directly correlated with a 'quiet' trend in sunspot activity. If the research they point to is correct, we could be in the beginning of a longer cooling period of close to a century in length. In that case, supply chain planners are in for quite a few more years of increased snowfall in areas normally just south of it and the resulting effects on supply chain performance.

It can't hurt to start integrating the experience from this year into scenario planning and advanced preparation for the future.

Comments

[Jan]

True, unfamiliar weather patterns are more often than not the cause of supply chain disruptions, even in countries who experience them on a regular basis. You may find some interesting reading in the research report issued by the Transportation Research Board: "Special Report 290 - Potential Impacts of Climate Change on U.S. Transportation", see my post for the link.