Lisa Anderson, a supply chain expert and founder of the LMA Consulting Group, explains to Inc: “You should really have a formalized relationship with suppliers. You should not treat them as a vendor, meaning that you’re just looking at price. You should treat them more as a partner.” Looking for help from competitors isn’t a bad idea when situations are dire, especially if you aren’t a national chain that could lean on a competitor for critical supplies to make it through threadbare times. “Have strong relationships with your entire supply chain…even competitors, [so] you can bring on more backup sources,” she explains. All it takes is a month on the ropes to potentially crash your business, Anderson warns.
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Hurricane Milton: How to Shore up Supply Chains When Extreme Weather Events Become the New Normal
Extreme weather events – and supply chain disruptions – are only growing more common in the age of climate change.
Hurricane Milton is barrelling toward the west coast of Florida. Meteorologists predict the storm will make landfall Wednesday at a level of either Category 3 or 4, in what one Wall Street analyst predicts could inflict between $50 to $175 billion worth of losses on the Tampa/Fort Myers region. Millions of residents have been ordered to evacuate.
Milton’s torrential wind and rain will likely batter the Sunshine State. The hurricane is historic, notching Category 5 status on Monday with sustained winds of 180 miles per hour as it raged through the Atlantic. It is currently a Category 4 as of Tuesday, according to the National Hurricane Center.
As businesses close down in anticipation of Milton’s arrival, it underscores the necessity of having logistical backup plans—especially as natural disasters become more commonplace in the age of climate change. It’s especially essential for companies operating within risk-prone regions such as Florida, to have established relationships with suppliers they can trust to pull through in a time of crisis.
Published October 8, 2024