As the U.S. continues to see an increasing number of natural disasters each year, the unpredictability and devastation of these storms can have significant consequences for your business. From hurricanes and tornadoes to floods and wildfires, these events can disrupt your supply chain, so it’s important to create a plan to reduce challenges and ensure business continuity during a crisis. Here are some of the challenges and how to mitigate risk for your organization.
Infrastructure Damage
The physical damage caused by storms is one of the most visible impacts. Roads, bridges, and ports can become inaccessible or damaged which create transportation delays for raw materials and components. If your facility or warehouse is damaged, there can be delays for your employees to get back to work, increased costs to move facilities, and longer delivery lead times for customers.
Manufacturing and Operations Disruption
Physical damage, power outages, and accessibility can cause downtime for manufacturing plants. Suppliers can be impacted, which can cause delays in your operations. There can be production impacts, delays in delivery of components, and costly repairs to equipment or your facility.
Supply Shortages and Price Increases
If production of goods or transportation of products is delayed, there can be a shortage of materials or components. This leads to an increase in costs, which impacts suppliers and end users. If there is a shortage of raw materials and pricing fluctuations, your bottom line can suffer.
How to Reduce Supply Chain Disruptions
You can’t control the weather, but you can take steps to minimize the impact of natural disasters on your supply chain.
- Sourcing materials and components from a number of suppliers across geographic regions can help minimize disruptions when a disaster strikes.
- Creating a disaster recovery plan to identify risks, developing response teams, and planning for business continuity so you have alternate options to continue production if necessary.
- Collaborate with your suppliers and distributors to minimize delays and create more resilient supply chains for your components and products.
With plans in place to reduce potential disruptions, you can mitigate risk to your manufacturing and production when a natural disaster strikes. Gexpro Services has a network of global suppliers and products to ensure your supply chain is supported during a crisis. Talk to our team today about customized supply chain solutions for your business.