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When it comes to water, processors need to get ready for risks

Setting clear, quantifiable targets with time-specific deadlines for a company’s entire supply chain is essential for achieving water resilience goals.

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Resiliency – the ability to overcome obstacles and find ways to succeed – is just as valuable to running a business as it is in personal life. Managers must constantly weigh the risks facing their business and plan ways to minimize them.

Food and beverage processors are particularly vulnerable to what the World Economic Forum in 2015 called the world’s number one long-term risk: the availability and affordability of clean water.

Whether it’s too little water due to drought, or flooding that creates havoc with crops or production facilities, or the cost of cleaning water contaminated by pollution, processors need to anticipate and find ways to ameliorate the risks involved with one of their most important resources.

Even where water is not a key part of the manufacturing process, it is often critical to providing raw materials. For food production, in particular, control over water use in the supply chain is critical since agriculture accounts for 70 percent of global water consumption.

In a new report on global water risk, researchers at Euromonitor International say businesses need to look at three main areas of potential impact on business continuity: operational costs, brand reputation among consumers and investors, and regulatory restrictions on water use and wastewater treatment.

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