Enterprise Risk During Hurricane Season
Hurricane season is very active here in the US but delays to businesses can be felt globally
In the Bahamas, damage to residential, commercial, and industrial properties from Hurricane Dorian that hit in early September is estimated to be $7B. Dorian then traveled up the Southeast coast of the US, closing ports in Florida, Georgia, and South Carolina. When the ports close, vessels in the area are re-routed to safe harbors, causing delays in the importing and exporting of goods. FreightWaves reported that the Port of Halifax, Canada’s fourth-busiest port, had 17 cargo vessels per day in the region off schedule by 24 hours.
Supply chains are disrupted when roads are blocked from the debris after the storm or completely washed out by the hurricane. Critical supplies that need to reach affected areas need to use creative logistics to navigate their delivery. Right after Hurricane Dorian, relief agencies used a Dutch naval ship, rubber rafts, jet skis, and aircraft to get medical products to the area.
Forbes magazine says it well, “The challenge for businesses in high risk areas is not if there will be a major natural disaster, it’s when it will arrive and what can be done to prepare and mitigate supply chain disruption so stores can remain stocked with the necessities and key industries can maintain business continuity regardless of the storm’s impact.”
Failure to adequately address supply chain risk may place your enterprise itself at risk. Many businesses aren’t prepared for the potential supply chain disruptions that can affect their bottom line due to random acts of nature. They need to have strategic plans in place to mitigate supply chain risks caused by natural disasters that may cut off critical raw material suppliers, sources of manufactured goods, major transportation facilities, essential transportation modes, and so on, resulting in major disruptions in supply chains.
To make strategic plans, you need visibility into your supply chain from end-to-end. This visibility can’t be a static spreadsheet; it needs to incorporate threat detection, qualification, early warning, and network assessment. Elemica offers Elemica Risk a solution that correlates risk incidents with your supply chain network assets, orders, and shipments to detect and understand the impact of a disruption.
Elemica Risk will bring visibility to you and your business partners to uncover potential disruptions that will impact customers, manufacturing plants, suppliers, logistics providers, and distribution centers. With Elemica Risk, real-time monitoring of world events combined with data collected across the Elemica Network can be analyzed to predict what will happen if a disruption occurs and alert the appropriate people to act.
During this Hurricane Season, mitigate risk to your enterprise by gaining visibility across your supply chain with Elemica Risk.