May 2019 | News | Takeaways

Blowing in the Wind

Tags: Supply Chain Management, Logistics, Supply Chain

If a transportation route, supplier, customer, or other essential supply chain partner is located in an area at high risk for hurricanes, then your business could risk a major disruption.

Colorado State University's Department of Atmospheric Science predicts the 2019 Atlantic hurricane season will bring 13 named storms—including five hurricanes and two Category 3, 4 or 5 hurricanes.

You can take some crucial steps now to help prevent supply chain disruption when the first storm of the season hits.

  • Have a comprehensive contingency plan in place, including back-up suppliers and alternative transportation routes. Make sure suppliers have back-up plans as well.
  • Establish an emergency communication plan for employees and suppliers in case operations are affected.
  • Prepare to monitor social media and have a transparent response ready to address customer concerns, troubleshoot issues, and communicate status updates.

One of the three main areas where your supply chain is most vulnerable is an upstream disruption—losing key suppliers, raw materials, or inventory necessary for production. According to Travelers, 31% of companies have a primary supplier located in an area prone to severe weather or natural disasters.