Hurricane Harvey took a physical and emotional toll on the city of Houston. Area businesses and families were faced with the overwhelming task of reconstructing their lives, homes and companies. The region has recovered strongly since then. Yet there is always the temptation to relax into complacency and believe that a disaster of this magnitude will never reoccur.
Focusing on short-term vs. long-term objectives is a common trap for many recovering businesses after a disaster. Unfortunately, some organizations don't learn much from their experiences and sit idle until the next event occurs. The key to avoiding this scenario is to have a tested disaster recovery plan already in place.
The first step in creating a disaster recovery plan is to conduct an internal risk assessment to determine the potential impact of a pending disaster on the day-to-day and long-term operations. This will enable you to account for different scenarios that may arise and test the disaster preparedness plan you've selected.
Next, identify the impact that each scenario would have on your business and outline the cost to mitigate the potential risk or the recovery interval after the disaster. Several factors such as flooding, lack of power, and the inability to get staffed were all present during Harvey. How companies responded to those challenges correlated with how quickly and strongly they recovered.
Prioritize the steps within your plan. Look at your organization and understand what components of a disaster would debilitate you, what your internal risks are, and prioritize based on that. For example, the first 24 hours after an event is reserved for making sure lives are in order. To do that, you must have systems in place to keep track of and get in touch with your team. The next 24 hours and thereafter should focus on recovery of data, technology systems and physical assets and transportation network. After you have secured your team, they can get to work on restoring vital information and documents.
While using a cloud-based provider is an effective way to do this, don't rely solely on cloud providers. There needs to be safeguards in place at your office or at remote, satellite locations to account for any anomalies that may arise such as Internet or power outages during a storm.
While it's imperative to have an established disaster preparedness plan in place, it's useless if you have not tested it. For example, if you have sent members of your team to work from higher ground in the event of flooding, have you tested to make sure that they have power where they are located? If they have power, do they have internet? If they have connectivity, do they have access to your network?
For those managing large-scale logistics operations, there should be a plan in place to consider the use and integration of third-party logistics (3PL) providers to fill in gaps created by the disaster. The contracts should include more than the physical aspects such as warehouses, transportation hubs and personnel. It should also encompass a tested and proven data integration model that allows you to electronically route and manage the logistics associated with your business. Make sure to test and validate the service level agreements with your backup 3PLs at least twice a year. All these things must be tested ahead of time for your plan to be effective.
The key metric in your testing process is the interval between the time a disaster occurs and when you can resume normal operations. In other words, if you have backed up your files in the cloud or rerouted operations through 3PLs, how long will it take to fully integrate and assume the operational responsibilities? These processes must be airtight before something happens.
In a crunch, many organizations discover that they don't have the resources they need to get ahead of the chaos. The ongoing trickle of obstacles hits harder and things begin to snowball before management can get a handle on what's happening. Factors such as lost customers, chargebacks and environmental problems take their toll. Many organizations don't survive. Although it will cost more up front, diligent management will prioritize the investment to put safeguards in place, develop a plan for disaster preparedness, and routinely test it.
Organizations cannot afford to function without guidelines on how to operate during and after a disaster. It's an emotional and trying time. Everyone can't help but be distracted. Having a plan in place instills a much-needed sense of control and survivability during a crisis. By consistently testing your plan, your team will also have the trust and confidence that will help them through tough times.
(Peter Edlund is a founding member and executive at DiCentral, a global B2B supply chain integration company based in Houston. He is the host of DiCentral's Connected, a video podcast that discusses current EDI trends with leading supply chain experts. He resides in the Houston area.)
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.