In the past few years, various regions of the United States have been hit with inclement weather conditions, storms and natural disasters. With each of these unfortunate events, areas are hit with strong winds, heavy rains, extreme temperatures and other factors that can not only damage property but also drastically disrupt business operations.
Thus, each natural disaster underscores the importance and value of supply chain management solutions to help detect risky events and make adjustments so as to curb costs and aid in recovery efforts.
Hurricane Isaac recently swept through the Gulf Coast, pummeling many cities along the coastline, and sending ripple effects across the majority of the country. The major storm should be a reminder to all businesses located in high-risk zones that are frequently hit with natural disasters to plan ahead with supply chain software and coverage. This can help them manage risks better and ensure minimal losses when disaster strikes.
III emphasizes protection
The Insurance Information Institute has called upon business owners across the country, particularly along the Gulf of Mexico, to invest in supply chain software and coverage to ensure optimal levels of productivity even in the face of a hurricane or tropical storm. Sharing information with business partners and collaborating on contingency plans may reduce vulnerability. The researchers at the institute explained how many regions often hit by natural disasters act as major trade and transportation hubs throughout the country. This indicates that disruptions in operations can be felt by local as well as remotely located businesses in the event of inclement weather and damage to infrastructure.
On the Gulf Coast, highways, rail lines, ports and the Mississippi River barge all maintain strong business flow for thousands of companies across the country. Disruption to this region will have a significant impact on the U.S. economy, and many businesses operating in or through these regions are not adequately prepared with risk management and supply chain software and coverage. Adequate supply chain software will help transmit messages or changes throughout business operations if a risk is detected, helping companies and partners stay informed about potential setbacks or delays.
Other forms of protection should be in place in the event of road closings or employees being unable to make it to work as a result of inclement weather or other unexpected occurrences. If products cannot be distributed for surprising or unpredictable reasons, suppliers should have a security blanket in place to soften the blow to customers, enabling the company to maintain its client base without losing too much revenue or having to inflate costs. This rule applies to both international and global businesses alike, as all enterprises can lose market share if left unprepared for the unexpected.