September 5, 2019
Hurricane Dorian is certainly taking over the news as it threatens devastation. I’ve included YouTube from USA Today of the storm. People are evacuating up and down the east coast. Although the impact on people’s lives is certainly more important, there is also a dramatic impact on businesses as well. As logical as it sounds for east coast manufacturers, distributors and other businesses to be impacted while preparations are underway and the storm passes, it will have a profound impact on customers, suppliers and their extended supply chains. Are you prepared to navigate these types of disruptions?
What Should We Consider and/or What Impacts Could Arise?
When I was VP of Operations and Supply Chain for a mid-market manufacturer, a hurricane devastated Greenville, North Carolina which was the location of our largest manufacturing facility. Luckily, since the facility used to be owned by P&G, they evaluated risks as a normal course of operations and the facility was on high ground and not affected; however, certainly the facility was closed and nothing could get in or out. That situation alone proved the importance of thinking ahead to key risks, managing proactively and creating a resilient supply chain.
An east coast issue is no longer an east coast issue. For example:
- Do you use the same carriers that might be tied up on the east coast?
- Are your servers on the east coast?
- Do you have any suppliers or customers on the east coast?
- Do you have suppliers who supply other customers on the east coast? Or do your customers have other suppliers or customers on the east coast? Most likely YES!
The bottom line is 80% of my clients are impacted directly (suppliers, customers, transportation partners) and 100% are impacted through their extended supply chain. At a minimum, don’t wait to think about disruptions until they are imminent. Build agility, flexibility and resilience in your business as well as within your extended supply chain. If there ever was a topic related to the resilient supply chain, this would be it! We have recently upgraded and added content to our resilient supply chain series.