Why building supply chain integrity is key to managing operational and reputational risk


To succeed in an increasingly resource-constrained and competitive wood products market, companies need to manage operational and reputational risk. That requires a transition from a short-term buying approach into a long-term system of building and managing the integrity of the value chain of wood products, says Angel Llavero Cruz, WWF Forest Product Markets and Supply Chain Coordinator, who reflects in this article on the importance for businesses to manage supply chain integrity and the role of FSC.

The amount of wood we take from forests and plantations each year may need to triple by 2050, according to the WWF Living Forests Model. At the same time, forests are being converted for other more profitable land-uses, particularly in “deforestation fronts,” potentially exhausting 170 million hectares of forests between 2010 and 2030 (WWF Living Forests Report). This imbalance between demand and supply will further increase competition for securing reliable wood supplies, which, in turn, increases operational risk for businesses.

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