Navigating Disruptions: Diverse Supply Chain Strategies for Port Strikes and Natural Disasters
From Maine to Texas, ILA Union dockworkers commenced a strike at 36 ports across the US East Coast and Gulf Coast, crippling supply chains as trade came to an abrupt halt. With America’s largest longshoreman union on strike and the recent destruction caused by Hurricane Milton and Helene, retailers sought to quickly modify their supply chains to avoid further disruption.
The US Southeastern marketplace was expected to see the most impact, causing the industry to grow frantic as we approach peak holiday-shipping season. This is why companies should prioritize building a diverse supply chain strategy to help navigate market disruption and strengthen resilience. From increasing your inventory and maintaining effective communication with suppliers to leveraging alternative sourcing, a multi-faceted approach will help ensure consumers don’t experience major turbulence during a port strike or natural disaster.
In this blog, we’ll explore the impact of the port strikes and hurricane devastation on US supply chains and share diverse strategies to navigate this landscape effectively.
Effective Communication
The recent trade suspension was a crucial time for businesses to contact suppliers to review timelines and make necessary revisions. Proactive communication that positions your business miles ahead and keeps your customers informed of potential delays is the advantage you need to prevent supply shortages.
An effective communication strategy involves transparency with stakeholders and sharing early notification of potential impact to your business. After assessing your internal resources, develop a concise message that expresses empathy and identifies preventative measures. Early communication with your supplier network, stakeholders, and customers can mitigate issues swiftly.
Design a solution-oriented communication plan with a collaborative 3PL provider that can help you tailor messaging to different stakeholders, address specific concerns, and share updates along the journey. This will help minimize reputable damage to your brand and ensure customer trust remains intact.
Safety Stock: Build Up Your Inventory
What products could be affected? The prolonged strike would have impacted roughly half of US trade, significantly reducing access to food and beverage products. Retailers that stock up early can safeguard against the immediate disruption. Aware of key products that are most vulnerable, prioritize these items by implementing strategic inventory management.
Shift to a Just-In-Case (JIC) model as a vigorous approach to housing extra inventory for products that typically have long lead times or from high-risk suppliers. Distributing additional stock across multiple domestic warehouses reduces the risk of local market disruption and enables you to quickly respond to customer demand.
Invest in storage solutions that optimize space utilization by leveraging warehouse space in high demand markets. High demand items, such as food and beverage products, are sensitive to supply chain disruptions. When you partner with a 3PL provider that offers dedicated food logistics and beverage warehousing solutions in markets nationwide, you can ensure your company adapts to uncertainties and remain agile through supply chain crisis.
Embrace Alternative Sourcing
Fortunately, the strike and hurricane devastation did not shutdown all ports across the US. The West Coast region, Mexico, and Canada were still accessible to divert cargo shipments. Multi-modal transportation, such as truck, rail, and air freight, offer an alternative gateway to move small or large volumes of products.
Consider sourcing products domestically or tapping into nearshore suppliers to reduce exposure to trade interruption and lower shipping costs. Additionally, establishing relationships with alternative suppliers will become useful if an emergency occurs. By diversifying your supplier base, you gain greater control over the supply chain, reduce lead times, and enhance your ability to respond to market demands.
Moving cargo from one region to another can be challenging without a well-design multi-coastal transportation network. A capable 3PL partner with deep resources can help you design a map of alternative suppliers located in critical marketplaces for enhanced supply chain responsiveness.
Learn more about our flexible supply chain solutions.
