We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Logistics providers wary of 2019 hurricane season
newsworthy

Logistics providers wary of 2019 hurricane season

May 17, 2019
Ben Ames
No Comments

Severe weather events have hit supply chains hard in recent years, so as the Atlantic hurricane season looms just two weeks away, many companies are applying some hard-earned lessons to their logistics operations in an effort to avoid disruption and plan for a quick recovery from the next storm.

Traditionally spanning from June 1 to November 30, the six-month span has lately included painful and expensive hits to U.S. roads, rails, and warehouses by hurricanes Florence and Michael in 2018, and by hurricanes Harvey, Irma, and Maria in 2017.

To help businesses take steps to minimize that damage, transportation and logistics provider DHL provides a supply chain risk management platform called "Resilience360" that the company says can help users to predict, assess and mitigate the risk of disruptions. The company on March 25 released its first "Annual Risk Report," listing the top 10 supply chain risk predictions for 2019. Number four declares: "climate change impact heats up," saying that forecasters predict this year could be the warmest year on record, pitting companies against an increasing number of weather-related disruptions.

DHL 10 Top Trends Infographic
Enlarge

A forecast from Colorado State University's Department of Atmospheric Science backs that up, saying those disruptions are on track in 2019 to include 13 named storms, including five hurricanes.

While such massive storms are mighty forces of nature, DHL says companies can use technology to mitigate hurricane risk, since storms are usually detectable three to five days in advance through data supplied by weather radar, satellite imagery, and airplanes carrying sensors. "Companies can map their supply chains, see which supplies are where, and what routes they're using," Tobias Larsson, CEO of Resilience360, said in a May 15 webcast. "Then they can see the predicted path of the storm, whether it will impact their suppliers, and note whether those are critical suppliers, who provide high-volume or high-margin products."

Armed with that model, companies can build buffers of backup capacity so they can continue operating even if inventory flow comes to a halt because of flooding, power outages, and other impacts. "Many just-in-time supply chains have very low inventory levels because they are optimized," so they may have to contact alternative suppliers or load some goods into trucks and put their stock on wheels, Larsson said. "You can't mitigate 100 percent of the risk, but you can do better than your competition."

DHL applied many of those lessons to its own practices after Hurricane Maria swamped Puerto Rico in 2017, and the company was scrambling to get its 10 warehouses on the island back up and running, Ewar Rivera, the director of operations for DHL Supply Chain in Puerto Rico, said on the webcast. As a provider of third-party transportation and warehousing services, DHL helped its customers build up inventories, so they had enough "safety stock" to stay in business, even though the movement of goods through the region came to a standstill as Puerto Rico was lacking clean water, electricity, food, and fuel, he said.

Each DHL warehouse has a business continuity plan (BCP) that is drafted with input from customers and from providers of crucial services like internet, fuel, and water. Many BCPs also include pre-agreed standing orders, so a diesel vendor will continue to make deliveries even when communications are down. "We also used catering services to our facilities, so employees could get food while working and even take some home after work," Rivera said. "We were up and running faster than other companies in the area."

The New York-based insurance company Travelers offered similar advice for companies preparing for the upcoming hurricane season, pointing out that just because a manufacturer is located in the Midwest doesn't mean that the upcoming hurricane season won't impact them.

Far-flung supply chains mean that essential suppliers, customers, transportation routes, or other dependencies could be located in high-risk areas, spelling danger for their clients thousands of miles away from a storm's path, Travelers said. The insurer provided three points of advice for businesses planning for the upcoming hurricane season:

  • have a comprehensive contingency plan in place, including back-up suppliers and alternative transportation routes, and make sure suppliers have back-up plans as well.
  • establish an emergency communication plan for employees and suppliers in case operations are effected.
  • prepare to monitor social media and have a transparent response ready to address customer concerns, troubleshoot issues and communicate status updates.

Setting priorities before the storm hits is a crucial step in hurricane preparation, according to the American Logistics Aid Network (ALAN), a charitable group that coordinates donations of logistics goods and services to supplement non-profit organizations' response efforts following natural disasters.

In a May 14 blog post comparing storm preparation to the safety pamphlets founds in airline seatback pockets, ALAN executive director Kathy Fulton advised people to "put on your own oxygen mask before helping others," saying that one of the most practical things you can do to help the cause of disaster relief is to be prepared to take care of yourselves and your loved ones.

Supply Chain Services Business Management & Finance Disaster Response
KEYWORDS ALAN - American Logistics Aid Network DHL
  • Related Articles

    The Logistics Matters podcast: Kathy Fulton of ALAN on preparing for hurricane season | Season 2 Episode 31

    The Logistics Matters podcast: Mark Stanton of PowerFleet on preparing supply chains for hurricane season | Season 2 Episode 22

    The Logistics Matters podcast: What's next for the USPS?; interest in TMS on the rise; the effects of Hurricane Laura | Season 1 Episode 21

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Jungheinrich buys Indiana warehouse automation vendor for $375 million

Shipping groups back bipartisan trucking overhaul bill

Walmart boosts investment in GoLocal delivery-as-a-service platform

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

  • Shipping groups back bipartisan trucking overhaul bill

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing