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Supply Chain Considerations During Hurricanes

As Hurricane Michael hits the Florida Panhandle, it again reminds us to assess potential locations and routes at risk, and to initiate efforts to minimize disruption.

Hurricane Michael is reported as the first Category 4 or stronger hurricane to make landfall in the Florida Panhandle, complete with what the The Weather Channel’s website reports as “catastrophic storm surge and destructive winds,” with a prediction that “over a million power outages will occur not just near the coast, but also inland after landfall.”

 

In this article, Jim Monkmeyer, President of Transportation at DHL Supply Chain, comments on content from the recent Resilience 360 report, “Hurricane Peak Season: What to Expect in 2018.”

 

Short-term measures:

 

Pre-positioning essential material and safety stocks: Hurricanes can now be forecast in advance with much greater accuracy, giving companies more time to plan mitigation efforts. By monitoring storm forecasts in real-time, companies can have advanced warning that can be used to assess potential locations and routes at risk and initiate efforts to minimize disruption. Mitigation efforts may include: increasing inventory to bridge short-term supply shortages; storing fuel reserves and back-up generators for power generation during outages; and setting up alternative communication systems such as Emergency Alert Systems (EAS), CB Radio or social networks for employees and customers.

 

Monkmeyer: Bottom line, supply chain managers should ask themselves, “What do we need to do to ensure business continuity?” and “Does our safety stock program make sense and is it easily accessible for fast repositioning?” These are especially important questions if your materials are sensitive to their environments, as a change in temperature or pressure for even minutes can destroy some products. You also need to think beyond “actions,” and identify a team who will spearhead these efforts—and ensure there are people who can step in if key team members are not available, or when fatigue sets in. Can you provide food and housing for these folks if necessary? Are you prepared to communicate through trade media—a valuable resource in a crisis—to inform your customers, suppliers and other vendors of the positive steps you are taking and to indicate that all is well (or not well)? These are all questions that will arise in the moment but can be answered in advance.

 

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