Extreme weather prompts supply chain action at Mondelēz

A recent Harvard Business Review study reveals that only 11% of suppliers are fully prepared for weather-related disruption. In the US, 49% of companies have experienced an increase in climate volatility, while China and Taiwan have seen this figure rise to 93%. Extreme weather events, such as floods, storms, and droughts, are becoming more problematic and are impacting supply chains globally. Cloris Zhang, SVP of Integrated Supply Chain at Mondelēz International, discusses the impact of climate change on the company's operations in the APAC region. They are investing in digital and technology innovations to build responsive and scalable supply chains, while also strengthening supplier partnerships and developing contingency plans.

Source: Link

FAQ

Extreme Weather Prompts Supply Chain Action at Mondelēz

Q1: Who is the AMEA supply chain chief at Mondelēz International mentioned in the Supply Chain Digital article?

A1: The AMEA supply chain chief mentioned is Cloris Zhang.

Q2: What is Mondelēz International doing to mitigate the impact of climate change on its supply chain?

A2: The specific details aren't provided in the snippet. However, typically such mitigation could include developing resilient supply chain strategies, investing in sustainable practices, and closely monitoring climate trends to anticipate and address potential risks.

Q3: Has Mondelēz International taken any measures in terms of environmental impact?

A3: Yes, Mondelēz International measures environmental impact in accordance with their internal Water Supply Management Health Safety and Environment System, with a focus on priority sites.

Q4: How does extreme weather affect the supply chain?

A4: Extreme weather affects the supply chain by shifting production zones, disrupting transportation and logistics, and causing more frequent and severe disruptions.

Q5: Why is it essential for companies to have strategies in place for weathering inflation and other economic issues?

A5: Strategies are essential for companies to maintain sustainable cost management systems, enabling them to remain competitive and have the ability to invest strategically despite economic challenges like inflation.

Q6: What role does technology play in helping to manage supply chain risks associated with climate change?

A6: Technologies such as Agritech can help futureproof agricultural supply chains by addressing challenges like freshwater scarcity and making operations more resilient to climate-related disruptions.

Q7: What is the relevance of ESG (Environmental, Social, and Governance) initiatives in supply chain management?

A7: ESG initiatives are important as they've moved from being a "nice-to-have" to an essential part of enterprise-level strategy, helping companies to address environmental, social, and governance issues within their supply chains.