For the past two years, severe weather caused unexpected disruptions along the East Coast, leading to a more challenging sales environment. With this winter affected by a strong El Nino pattern, the first quarter of 2016 is at least providing some warning of the potential for more weather issues. The National Oceanic and Atmospheric Administration recently announced that it expects the El Nino effect to continue into the spring.
Are you prepared for the disruption?
“We know there’s going to be impacts due to El Nino this season,” said Rick Nelson, American Association of State Highway and Transportation Officials snow and ice cooperative program manager. “There’s also a lot of uncertainty about when and how the roads in each state will be impacted. We’ve already seen flooding and mudslides in the Pacific Northwest and early snowfalls and warmer temperatures in other parts of the country. State DOTs are preparing for whatever happens and at the same time they’re also hoping for the best.”
While state and federal agencies are preparing for potential issues, distributors should make sure they have their own contingency plans in place. The cost of disruption can be high. A broken supply chain can lead to increased overhead, added shipping expense, overtime pay, inefficient distribution centers and a loss of customers looking for a distributor that can deliver. (Read more in Preparing for the Worst.)
And any contingency plan should include consideration of your employees' well-being.
Kevin Rosenthal, executive director of business development at A&M Industrial, Rahway, NJ, offers these tips for dealing with severe weather disruptions.
- Make sure you have the essentials on hand.
- Have a health and safety plan in place that includes evacuation procedures and established meeting places.
- Make contingency plans with your suppliers for the products essential to your business.
- Talk to experts who can help you identify gaps.
