August 18, 2022
The Business Impacts of Natural Disaster and How to Approach It??
Natural disasters are one of the most unpredictable and difficult threats to deal with on a business level. In the span of a day, transport routes can be shut down, ports backed up and the entirety of global supply chains impacted. Contractors, retailers, and manufacturers might all find themselves with a shortage of the products and supplies they need to get the job done. In November 2021, we saw these exact impacts when the mudslides and floods in British Columbia destroyed major highways and bottlenecked major ports. Not to mention, when supply is impacted, consumers face inflated costs for what supply is left – and begin making hard choices in where to spend their money. While natural disaster is incredibly challenging to overcome, there are some practices that can help a business in the case of an emergency.??
Be Organized – Do not wait until disaster hits, have detailed documentation and guidelines established that dictate plans in the case of a supply chain emergency.?
Be Transparent – Disaster can make or break business relationships at the drop of a dime. Be clear and open with suppliers, partners, and internal staff in a timely manner. Openness goes a long way in the recovery process.?
Be Educated – Knowing and monitoring the region you operate your business in is essential in being able to form emergency plans and be as proactive as possible when disaster hits.?
Rely on Partnerships – Utilize strong partnerships and help each other. There is value in combined resources and manpower that is not forgotten when the disaster has subsided.??
Assess and Adjust –Recovering from a natural disaster is a fluid situation. No matter how much you plan, you will still need to adjust which could include re-routing suppliers and schedule changes. Ensure you are consistently reviewing the situation to make these choices.??