Keep Your Supply Chain Moving!
(855) 420-9447Learning how to find alternate suppliers in case of emergency when a natural disaster strikes is essential for all businesses. Disruption due to storms or other similar events can leave companies stranded and without essential supplies to continue their operations. With alternate providers in place, businesses will be able to overcome these events.
According to the National Disaster Recovery Framework, during emergencies like natural catastrophes, it’s vital to identify backup suppliers. Businesses should assess the damages that a storm can cause. Afterward, companies will need to vet all possible suppliers. A provisioner can be found in the U.S. or in another country.
Once you know how to find an alternate supplier in case of emergency, you’ll be able to overcome the dangers of any natural disaster.
Natural disasters disrupt supply chains and cause serious financial and operational setbacks. When this happens, it can be difficult for a company’s usual supplier to send products to their stores or warehouses.
To overcome this challenge, many businesses have to use a backup provisioner to get the goods they need. This ensures that any disruptions are minimized and products continue to reach customers. Companies will also reduce their financial losses when they have a spare manufacturer to fall back on.
Alternate suppliers are also essential because of the frequency at which natural disasters hit the U.S. every year. For example, consider our data on the amount of hurricanes in the past 22 years.
| Year | Amount of Hurricanes (Category 1-5) | Amount of Major Hurricanes (Category 3-5) |
| 2001-2010 | 18 | 7 |
| 2011-2020 | 19 | 4 |
| 2021-2022 | 3 | 2 |
Provided by the National Oceanic and Atmospheric Administration
As the data shows, a total of 40 hurricanes hit the country in a little over two decades, with a total of 13 being major strikes. These are the ones just impacting the United States, so globally numbers are even higher. Businesses in the U.S. Gulf Coast and Atlantic states are most at risk of these powerful storms.
While scientists aren’t sure if the number of hurricanes will increase in the future, they are certain the intensity of these storms will increase. Hurricanes aren’t the only natural disasters that can hurt American companies and suppliers. States in the upper Midwest and Great Plains of the country tend to experience large amounts of snow storms.
Earthquakes can also occur, particularly in California, Alaska, and Hawaii. Regardless of where a business is located in the U.S., there’s always the possibility of a natural disaster disrupting the operations of a supplier.
Finding new suppliers before a natural disaster will give businesses the ability to overcome these events. Fortunately, there are a few steps companies can use to find the right one.
This includes:
With these two steps, a company will be able to locate a supplier that will help them when a natural disaster-related emergency takes place.
In the case of natural disasters that can be predicted, businesses should assess the potential damages. Events like hurricanes and blizzards are much easier to detect and track. As a result, many experts can predict the direction each one will travel. Companies can use weather reports to determine the severity of these storms and how suppliers will be affected.
When assessing the potential dangers of a natural disaster, business should consider:
Unfortunately, most natural disasters can’t be predicted. Therefore, the extent of the damage isn’t assessed until after it occurs. Nonetheless, natural disasters of all kinds can cause damage to infrastructure. If a supplier’s facility is harmed, it may be difficult for them to get products to a business’ warehouse or store. The same can happen when roads, highways, and bridges are damaged.
A disrupted supply chain can lead to delayed deliveries and hurt revenue streams. Depending on how badly a natural disaster impacts a supplier, a business could lose a large amount of money. As a result, companies will have to decide between finding another provisioner or waiting for their primary one to bounce back.
Enterprises should also consider how badly a weather event can disrupt supplier production. Anything from power outages to delayed shipments of raw materials can slow a provisioner down. If a supplier can’t send in items needed by a company for a prolonged period, an alternative provider will have to be hired.
It’s not just the provisioner’s’ facilities that can be impacted. Transportation routes, ports, and storage facilities might also be compromised.
Companies will need to consider if their goods will be:
Depending on how long a company is willing to wait, a new supplier that can ship goods faster might be required.
If a business has determined they need to find an alternate supplier, they’ll have to vet them carefully. The last thing a company wants is an unreliable partner during desperate times.
Businesses can examine the following areas to find a reliable supplier:
Looking at the history of the supplier and their reputation is the first thing businesses should do. This will help companies determine how reliable a provider will be once hired. Businesses should review other clients that work with the supplier. A manufacturer that offers services for legitimate enterprises is one that can likely be trusted.
Capacity and scalability is another important factor that businesses should consider when looking at alternate sources of goods. A company that wants to quickly recover from a natural disaster requires a supplier that can meet demand. To determine if a provider is up to the task, businesses can assess their operation and the amount of product they put out.
Even if a company is working through a natural disaster, customers expect their products to be intact upon arrival. When looking for an alternate supplier for emergencies, it’s vital for a provider to have a quality control plan in place. Without one, business won’t know for sure if the provisioner they’ve chosen will create reliable goods.
New provisioners of goods can either be found domestically or internationally. The best one depends on the needs of the business.
For businesses striving to maintain consistent operations after an emergency, hiring a domestic supplier can be a great option. However, there are benefits and downsides that will need to be considered.
The positives of using a domestic supplier include:
Shipping times are much shorter with domestic suppliers. Thanks to this benefit, inventory will arrive much faster at company warehouses and stores. Being in the same time zone and speaking the same language makes communication easy. Therefore, changes and concerns can be addressed quickly.
With shorter distances, businesses often save on hefty international shipping fees. Over time, this can lead to significant cost reductions in logistics. In some cases, a company might even be able to hire a domestic supplier that’s close to their stores and warehouses. This will further increase cost savings.
Despite the benefits of using a domestic provider, there are some downsides that companies should know about.
This includes:
While shipping expenses are less when using a domestic provider, manufacturing costs are likely to be higher. This is a big reason why many companies source suppliers from overseas.
Another problem with domestic manufacturers is the limited choices that are available. Certain products or other materials may not be obtainable from U.S. providers. If a company normally purchases exotic goods from their supplier, they’ll be limited to fewer options if they choose a domestic one.
Reliance on U.S. providers can also be a downside, depending on their proximity to a natural disaster. If a supplier is impacted by a weather event, they’ll be knocked out of commission. This will leave companies that need inventory in a tough position.
In some cases, a supplier in another country will be a better option when a natural disaster occurs. A company that uses a foreign provider will have access to more resources and products. Like any sourcing strategy, there will be some downsides to this method.
The benefits of using a foreign supplier when a natural disaster hits include:
Accessing global markets can expose businesses to a broader range of products and materials. Companies can gain access to old products, as well as new items. This can help business bounce back stronger than before.
By spreading suppliers across different geographic regions, companies can mitigate the risk of local disruptions caused by weather events or other natural disasters. If domestic providers are impacted, a business can pivot to a foreign one that’s operating at peak efficiency.
Certain nations offer trade incentives, tax breaks, and other types of benefits to U.S. importers. Considering natural disasters can be costly, a business will be able to save money when using a supplier in a trade-friendly country.
Now, it’s time to consider the downsides of sourcing goods from a foreign nation.
This includes:
Shipping times from foreign suppliers are much longer. When natural disasters occur, business operations must quickly return to normal. Therefore, a foreign supplier isn’t always the best option in this scenario.
After a natural disaster, companies must communicate their needs to a manufacturer. Foreign providers are in different time zones and often speak a different language. This makes relaying demands and needs difficult for a company.
Manufacturing can be cheaper in foreign countries, but transport costs are usually more expensive. Considering the distance and modes of moving freight typically used, companies can expect to spend a great deal of money for these goods. This can be hurtful for a business that’s struggling to recover after a natural disaster.
While there are some nations that offer various trade incentives, customs regulations can still be difficult for enterprises to follow. Businesses with no experience importing will have an even more difficult time working through these rules.
Many businesses rely largely on truck transport to ship goods to their warehouses and stores. However, natural disasters make this challenging when infrastructure is damaged. As a result, companies will need a fast alternative.
Air transport provides a good secondary option. While shipping via plane will be more expensive, products traveling by air arrive much quicker. Freight still has to travel on a truck to get to warehouses and stores. Nonetheless, transit times are much less with this method of transport.
At Emergency Management Logistics, we understand the challenges of maintaining a supply chain in the aftermath of a natural disaster. Our years of experience have equipped countless businesses with the agility and foresight needed to navigate these complex challenges.
The services we provide include:
With these services, your business will be able to recover quickly when disaster strikes. If you’re ready to use our services, then get your quote today. Alternatively, you can also give our team a call at (855) 420-9447 to use our services or ask any questions you might have.