October 2020

3 Simple Solutions to Avoid Logistical Nightmares Caused by Natural Disasters

In today’s logistical climate, many things are uncertain. How do you manage logistical operations in light of COVID-19 restrictions both domestically and globally? What happens if supply surpasses demand? These questions may seem daunting, but with proper planning and preparation, solutions are possible.

In addition to these concerns, though, another one looms large: how do you keep your goods - and your business - safe in the event of a natural disaster?

Recent natural and man-made disasters like the wildfires in California and hurricanes along the Gulf Coast showcase the difficulties that arise with logistics management and solutions. Particularly for natural disasters, logistics and the transportation of goods to and from an affected area play a large role in both national and local relief efforts.

NATURAL DISASTERS CAN WREAK HAVOC EVEN ON YOUR BEST PLANS

For example, when a wildfire threatens a neighborhood, localized area or even a large part of a state like California or Oregon, no business or home is guaranteed to be protected against the flames. For a business in the path of a wildfire, the process of evacuating and returning to a pile of ash and rubble is nothing short of devastating. In these scenarios, logistics and warehousing operations often provide the first valuable solutions in the form of aid, water and other supplies for victims. Unfortunately, wildfires can also block and damage infrastructure. This means that establishing effective forms of alternative storage and transportation solutions is necessary.

Tropical storms like Hurricane Laura that ravished the Louisiana Gulf Coast late this summer bring their own set of problems when it comes to logistics. Due to the devastation that occurred with 2005’s Hurricane Katrina, concerns about managing much needed goods and supplies have been front of mind for the logistics industry.

Particularly for logistics centers located in areas with higher risks for hurricanes and even earthquakes, relying on decentralized warehousing is an important solution to consider. If one warehouse were to be damaged during a storm, diversifying your goods at another location would mean less economic and physical impact. For any natural disaster, fast delivery of goods like food, water and medical supplies is imperative for effective relief operations.

PROTECT YOUR PRODUCTS ON THE SEA WITH MARINE CARGO INSURANCE

If ocean freight makes up most or all of your business model, you need to consider (and most likely have) Marine Insurance for your cargo. Marine cargo insurance protects your products should they be lost or damaged in transit. The ocean is a cost effective path to send your cargo around the world – but with it comes potential for treacherous seas. The difference between staying uninsured and opting for protection can often be worth thousands of dollars – money that you could use to invest in your business should your cargo be damaged or destroyed.

SOLUTIONS FOR WHEN DISASTER STRIKES

These simple approaches will help you avoid some of the negative impacts a natural disaster can have on your goods and your business operations. They are the 3’C’s: Cooperation, Communication, and Capabilities.

COOPERATION

In the event of a natural disaster, cooperation is vital among several different groups. This might mean that if you’re a smaller distribution company, you consider partnering with a larger transportation entity. Similarly, working with state and local authorities and even grassroots organizations means more effective decision-making and faster delivery times. This applies whether you’re looking to use your logistical support to help relief efforts or if you want to minimize the impact that a natural disaster may have on your business goals and projects.

COMMUNICATION

Communication is vitally important when it comes to navigating the repercussions of natural disaster or otherwise on logistics. Regardless of how big a company is, the strength of your communication strategy will go a long way in predicting how you manage in the event of a natural disaster. Consider putting an Emergency Response Team in place before an event happens to ensure a designated team is ready, available and knowledgeable when the time comes. Keep communication clear and strong among and between your company’s departments and those of other organizations. As mentioned above, don’t be afraid to reach out to local authorities to collaborate on the most effective and possible solutions. Finally, diversify communication methods in the event of a power outage to ensure seamless continuity in your logistics processes.

CAPABILITIES

When faced with a natural disaster, preparation and resourcefulness is key. If you manage a warehouse company, analyze the physical locations of your facilities, particularly if any of them are in an area prone to natural disasters like hurricanes or wildfires. For example, a warehouse in Georgia could supplement the stock to cover the damage that your Louisiana facility suffers because of a hurricane. In addition to mitigating any potential losses from depending on one facility, relying on other capable options for logistical needs results in fewer interruptions, faster service, and satisfied customers.

Keep things running smoothly – even during a natural disaster

Predicting natural disasters far in advance is impossible. But how you prepare for what happens next when disaster does strike is not only smart but necessary for the success of your business. At JF Moran we deliver your cargo, while also delivering peace of mind. Are you ready to learn how we can help protect your bottom line and your goods even in the event of a natural disaster? Contact us today!