Five Ways to Protect Your Supply Chain from Natural Disasters
Natural disasters are becoming increasingly common, posing a significant risk to supply chains nationwide. From the recent wildfires on the west coast to catastrophic hurricanes on the east coast, weather-related incidents have the potential to put a stop to logistics operations. So what can you do to help mitigate risk and minimize the impact when disaster strikes? The answer lies in properly using data and systems to diversify, predict, and enable flexibility within your supply chain.
Disperse Inventory to Minimize Risk
Storing inventory in multiple geographic locations can help mitigate losses when a natural disaster impacts a facility. Why? The potential for a multi-coast distribution is unlikely, so having two or more inventory stocks in different risk areas creates further supply chain resilience.
Warehouse management systems (WMS) and enterprise resource planning (ERP) platforms provide visibility into inventory distribution. This allows businesses to quickly assess which locations are affected and make on-the-fly adjustments to ensure supply chain stability. By leveraging data, operations can optimize stock allocation and ensure diversity among inventory facilities.