It seems like every week this winter there's an announcement about a closed freeway due to a blizzard and South Florida is still cleaning up the devastation caused by hurricane Ian, especially when it comes to the supply chain. With today’s climate changes and challenges, it’s very likely that other weather emergencies like hurricanes, tornadoes, droughts, wildfires and snowstorms will increase. In fact, reports from Climate.gov show that rising temperatures have increased the frequency and severity of extreme weather-related events.
Often the logistics challenges that come with weather emergencies are twofold: lack of planning and inadequate project management in the aftermath. Shipping rates are drastically affected when the only trucks headed to an area are filled with FEMA supplies and empty trucks returning. In addition, power outages can cause a complete lack of visibility into where active shipments are located.
In the post-COVID era, not every employee works in the same office, with many employees being remote. Because of this, the daily weather water cooler chat is greatly reduced, and oftentimes weather emergencies can go overlooked if they aren’t in a shipper's own backyard. When a weather emergency hits, a retailer's normal everyday logistics become more project management as regular routes are affected as well as supply and materials. Being prepared in advance and having a plan to respond and troubleshoot should these interruptions occur is key when it comes to mitigating risk, keeping customers happy, and managing budget.
Develop a Critical Weather Strategy
- Ensure that inventory is distributed accordingly in advance of a weather event and be prepared to change routes and lanes to accommodate the changes; this also includes early replenishment of goods.
- Develop an alternative routing guide that provides a good bench and backup list of available carriers in the markets your business services.
- Select logistics providers based on their ability to adapt and communicate well during times of inclement weather and have the expertise to help troubleshoot.
- Keep all company employees, regardless of their location, updated with current weather events, even if it doesn’t affect their day-to-day customers.
Prepare in Advance
- Provide a series of templates and scripts to help both employees and customers deal with weather emergencies.
- Have a plan to keep drivers and those on the frontlines of the supply chain safe during weather emergencies, like those that work in fulfillment centers or cross-docks.
- Take advantage of reverse logistics strategies to avoid having empty loads returning from a weather-affected area.
- Communicate with supply chain partners in advance about your disruption prevention strategy so they're aware of next steps should one occur.
React Accordingly
- Weather emergencies often cause a snowball effect (pun intended) when it comes to logistics. Not only are current shipments affected, but so too are future shipments to the affected area, storage rates and freight visibility. A service provider that not only provides day-to-day services but also project management when it comes to an emergency is key.
- Understand that there will be delays to your products. Next- or two-day service might not be available during the days, weeks or months after the storm.
- Don’t forget your employees will be impacted also, not just your company. There will probably be a shortage of employees due to them evacuating or the loss of their homes. This will cause a shortage of production and order processing. Remember to be empathetic.
- Drivers will also be in short supply as well.
- Final mile deliveries will be halted for a period of time. Make sure there are plans to not overflow the warehouse with inbound products that cannot be delivered.
While weather emergencies can’t be stopped, if you plan, prepare and react accordingly, it’s still possible to retain good relationships with both customers and employees.
Daniel Sokolovsky is the founder and CEO of Warp, a freight tech company that connects shippers, carriers and facilities to find the most efficient route for middle-mile freight.
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Daniel Sokolovsky is the founder and CEO of Warp, a freight tech company that connects shippers, carriers, and facilities to find the most efficient route for middle-mile freight. Prior to founding Warp, Daniel built Amazon’s last-mile service for every shipper not named Amazon with AxleHire. Daniel is now doing the same thing with the middle mile. Daniel studied Applied Mathematics at UC Berkeley.