This is a quick follow up to our recent post about resource security. Last week, China suspended shipments of rare earth minerals to Japan. Companies rely on these materials to manufacture an array of high-tech products, including auto parts for Toyotas. China produces more than 90 percent of the world’s rare earth minerals. It was not clear if the supply disruption was due to a diplomatic dispute, or perhaps related to China's recently-imposed global export quota on rare earth elements.
Regardless of the reasons for the supply disruption, this is another example of events that are raising awareness about resource security issues. It's one reason why we're seeing companies taking a more active role in the production of raw materials, as well as developing sustainable resources for their supply chains.
How are you addressing the issue of long-term resource security? Look at your entire supply chain and operations. Do you know what mass and materials are required to keep your business model afloat? Do you know the various factors that could impact the supply of each resource on which your organization depends? You can learn more about the role of resources in wealth and the importance of resource performance by exploring "dMASS Basics."