The 2016 crises that took supply chains by storm

Fire. Snow. Hurricanes. Floods. Mother Nature constantly tests supply chains’ resilience, and more often than not – she wins. The past six months alone saw four unexpected events roil the logistics process, causing endless backlogs.

While some were sudden, most are seasonal, and supply chain managers must invest in emergency management plans to ensure their company can deliver on-time, every time.

A warehouse fire may in the long run be inevitable, but knowing how to react will save time and money during an emergency. A hurricane or wildfire, meanwhile, must be expected and factored into logistics plans as the respective seasons near.

For many, however, the biggest lesson of 2016 was manmade. A shipping line’s bankruptcy led many to realize financial risk is prevalent throughout the supply chain – through carriers as much as suppliers.

Below, four crises that marked the second half of 2016, and a few tips to avoid future disruptions:

  1. Cargo stranded, losses mount as CA wildfire blocks thoroughpass

    The Blue Cut fire rages in over 30,000 acres disrupting rail and truck passage between Los Angeles and Las Vegas. Read More >>

  2. Hanjin bankruptcy yields logistics disaster

    Stranded containers, rising spot freight rates and contract challenges befell the supply chain this morning. Full Timeline >>

  3. Gap warehouse fire shows cost of lean supply chains

    Gap's northeast distribution center accounted for a third of the company's distribution space, sparking severe disruptions for the company during peak season. Read More >>

  4. Hurricane Matthew threatens East Coast supply chains

    Weather conditions are expected to snarl pick ups and deliveries along the Eastern Seaboard. Read More >>

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Filed Under: Logistics
Top image credit: Wollex