Disruptions are Difficult to Manage
Businesses are woefully unprepared for disasters and disruptions in their supply chain. In fact, two-thirds of employees say their businesses have not reassessed safety and crisis plans since the last time they faced a natural disaster.
In the first half of 2014, the U.S. lost $50 billion in productivity due to natural disasters. Much of the disruption is from delayed or stopped transportation, which is particularly susceptible to poor weather conditions and natural disasters.
Some companies are reactive and agile during a disruption or disaster – using a transportation management system (TMS) to reroute freight in transit and schedule alternative modes for inventory on hand. But, most companies aren’t able to be proactive when disruptions occur, and many find it difficult to be reactive in these situations.
It is likely your company will be hurt by the next potential disruption in your supply chain. Often times, natural disasters and disruptions are unavoidable, and all you can do is limit the damage done to your supply chain.