October 2018 | News | Trends

In the Eye of the Storms

Tags: Logistics, Supply Chain

As the 2018 hurricane season continues to blow through, DHL Resilience360 offers these risk mitigation measures:

Pre-position essential material and stocks. By monitoring storm forecasts in real time, companies can assess potential locations and routes at risk, and initiate efforts to minimize disruption such as increasing inventory to bridge short-term supply shortages; storing fuel reserves and back-up generators for power outages; and setting up alternative communication systems such as Emergency Alert Systems, CB Radio, or social networks for employees and customers.

Draw up business continuity plans for at-risk locations. A business continuity plan addresses critical aspects such as potential alternative suppliers, alternative routes to and from crucial locations, key contacts, additional short-term transportation costs, and priority shipment identification.

Use mapping tools for supply chain risk assessments. Mapping tools create greater transparency and help companies understand interdependencies in their supply chains. By overlaying risk exposure scores and identifying locations prone to hurricanes or flooding, companies can effectively prioritize mitigation efforts for risky locations down to sub-tier supplier levels.

Diversify manufacturing and distribution locations. If alternative suppliers, production and warehouse facilities lie outside high-risk areas, companies may still be able to continue production and fulfill orders in case of a disruption. Establish alternative transportation routes from unaffected suppliers or warehouses in advance.

Establish long-term partnerships with logistics suppliers. Trusted relationships with logistics providers can help secure capacity during a disaster. Providers can book capacity on charter flights to move shipments to their final destination and from disaster areas when everybody is vying for space.






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