If you live in the UK, you are probably fed up of the seemingly continual rain we have been experiencing over the past few months.
Insurance companies must be pretty fed up with the weather too. According to the Association of British Insurers today, firms will have to pay out around £500 million in June - £17 million a day – to those affected by flooding and storm damage.
As supply chain risk has increased in corporate importance, the main focus has been on natural disasters such as the Japanese earthquake and tsunami.
But as seen by the scale of the claims above, the ‘drip-drip’ effect (quite literally at the moment) of smaller disruption also needs attention.
As Dave Alberts, director at consultancy Crimson & Co
, says: “Unfortunately, there is no way in which to fully prepare for such natural disasters, as they are unexpected. However, the frequency at which these occur validate that contingency plans must be put in place wherever possible, and organisations must attempt to protect product supply through efficient, planned out strategies and best practices. Research into the effects is a good start and companies participating in this are clearly at the forefront of successful and adaptive supply chains.”