Risk and Resilience of Global Supply Networks: Identifying and Mitigating the Water Stress Risk of the Californian Wine Industry Supply Chain

Abstract

This paper explores natural capitals (Water, Biodiversity and Eco-system services) in supply chain design from the perspective of water stress. This research builds upon natural capital theory and supply chain configuration analysis approach. Three bodies of literature have been reviewed: water stress, risk management and supply chain. A case study research approach was adopted drawing upon exemplar supply network partners within the Californian Wine Industry supply chain where currently water stress risk exists. A key finding of this research includes an observation that supply chain design needs to include natural capitals usage and stakeholder collaboration. This study advances the supply chain configuration approach by illustrating the significance of internalising natural capitals for supply chain configuration from a risk perspective. This study suggests that natural capitals are significant resources in the supply chain, and supply chain design needs to incorporate collaboration across an extended network of stakeholders.