The LA County fires are leaving a lasting impact on supply chains. In this Supply Chain Byte, Lisa Anderson discusses the challenges businesses face, and actionable steps companies can take to adapt and maintain resilience during this crisis.
Around 13,000 homes and structures have been destroyed, neighborhoods scorched, power and other infrastructure interrupted, and supply chains disrupted. For example, local retail supply chains will be significantly disrupted as local stores burned down, people were displaced, and demand and supply have become misaligned. In fact, demand will move as people are displaced, sink in fire-impacted areas, and spike as families replace key items. Building and construction products are likely to experience shortages and inflation as rebuilding gets underway.
To successfully navigate these changing conditions, supply chain executives must stay on top of demand and supply changes. Focus attention on understanding customers’ needs and proactively planning demand. Similarly, keep track on down-the-line supply impacts and ensure you have a robust end-to-end supply chain. Utilize SIOP (Sales Inventory Operations Planning) to realign demand and supply and stay ahead of changing conditions especially as these impacts will be further changed as the local area prepares for the Olympics. Make sure you have backup sources of supply and that you create resiliency in your supply chain.