Resource scarcity could impact supply chainsWith growing global populations and increasing resource use by businesses, a variety of industries could face shortages of essential materials in the not-so-distant future. Seemingly abundant natural resources such as water, minerals and energy could rapidly deplete in the coming years, resulting in problems for business supply chains across the world.

As these natural resources become increasingly scarce, it could become difficult, if not impossible, for some corporations to continue using the amount they currently believe necessary to keep up with consumer demand, enhance production or transport merchandise across the globe.

Preparing for resource scarcity in the future
For companies whose procurement strategies include purchasing in-demand, limited resources, resource scarcity could cause limited production or even merchandise shortages in the future. Without the materials necessary to manufacture products, a corporation may find itself lacking the ability to remain profitable and successful with its current product line and could find itself unable to keep up with its current production levels in the near future.

To prevent such problems in the coming years, companies should begin taking the steps necessary to ensure their production and procurement is not interrupted and profitable goods remain on the market even if resource shortages become a reality. Some corporations may want to begin investigating more sustainable strategies that limit water use, cut back on natural gas consumption, implement a strategic sourcing policy or rely less heavily on other resources that are rapidly depleting. This will ensure that if limited natural resources ever begin impacting businesses and production strategies, a company will already be using less and be able to better adjust to such scarcity.

Some companies have already started to take such steps, while others are implementing green energy as not only a cost savings strategy but also a way to protect a business from resource limitations in the future. Those companies already starting to use solar, wind or geothermal power in their production facilities protect themselves from the possibility of limited energy sources like coal and gas in the years to come, while some are using greener logistical tactics to be certain their goods will always be able to get to market for consumers. Still more are taking the initiative to reduce the use of potentially scarce materials in their products to guarantee future shortages will not limit their ability to produce their most profitable goods and hurt revenue.
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