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Gartner Research and Advice for Disaster Supply Chain Risk Management and Recovery

September 01, 2017

Contributor: Kasey Panetta

Top free Gartner research for supply chain management leaders in the wake of a disaster.

Enterprises located in areas affected by Hurricane Harvey will be under enormous stress and pressure when it comes to business continuity and, specifically, challenges with supply chains. However, there are steps businesses can take to mitigate the disruption and ensure the best response.

“It goes without saying that ensuring the safety, health and welfare of your employees is the top priority,” says Michael Dominy, research vice president. “After tending to these most important resources, we have the following recommendations to supply chain leaders responsible for planning and operating supply chain and manufacturing activities within or outside the areas directly impacted by the hurricane.”

Dominy recommends supply chain leaders take the following actions in the wake of a disaster or crisis:

  • Contact leaders at impacted suppliers to understand how they are managing through the issues, what the impact is to their supply chain, and if it will cause any potential delay in products or services.
  • Update your supply chain plan and adjust within the appropriate time horizons. This means leaders need to modify demand plans to reflect short term implications associated with a drop in customer orders and revise demand forecasts to reflect increased demand that will likely occur as the impacted areas recover. Also, change manufacturing plans and purchase order forecast based upon the degree of impact and how much flexibility you have in manufacturing operations and your supply base.
  • Consumer goods and consumer durables manufacturers should plan on a dramatic demand spike not only as a result of a 5 day disruption to buying patterns but also in the following weeks and months.
  • Distributors and manufacturers in the building industry should plan for increased demands starting over the next few months and continuing for at least two years.
  •  Modify customer order routing logic to direct fulfillment to alternative distribution centers, manufacturing sites or suppliers.
  • Analyze your transportation network and carrier base. You may need to source transportation in the spot market and to a greater extent than anticipated.
  • Start your search for warehouse space outside disaster areas as quickly as possible so you can supply customers with affected warehouses.
  • Within the next 3 to 6 months conduct a supply chain network design / redesign analysis to help with longer term decisions about supplier, manufacturing and logistics networks.

Free Gartner supply chain management research 

Gartner has gathered several pieces of research regarding supply chain management in the wake of a disaster and made them freely available.

Five Key Supply Chain Actions to Take When Disaster Strikes

Recent crises across the globe have promoted enterprises to create plans that address major supply chain interruptions. Business leaders should focus on five key areas to manage a crisis situation.

Supply Chain Risk Management at Healthcare Providers Must Move Beyond Emergency Planning

The daily pressures of healthcare management can mean that supply chain risk management planning sometimes slips down the list of priorities. However, healthcare provider supply chain managers must educate the organization on the value of a comprehensive risk management program and positive impacts it will have on the patients and costs.

Risk Management in Life Sciences Requires Protecting Both Your Company and Your Patient

To ensure continuity of care, supply chain leaders in life sciences need to implement an iterative, cross-functional risk mitigation process. This will allow for protection of patients and allow for mitigation instead of recovery.

Jump-Start Your Supply Chain Risk Management Initiatives

Managing supply chain risk is a challenging task, but companies can utilize pre-existing tools and data to improve their plans.

Preparing for the Perfect Storm: How to Minimize Supply Chain Disruptions by Better Defining Risk Factors

Risk management has become a major initiative as global supply chains become increasingly connected. Identifying risks in sourcing and procurement is key to laying a foundation for a risk program.

Shape Your Supply Chain Network to Support Growth and Manage Risk

While supply network optimization is generally driven by cost and profit, a structured approach can allow supply chain leaders to meet these needs, while also mitigating risks.  

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