Weatherproofing The Supply Chain By Michael Matacunas, Manhattan Associates

When devastating storms, hurricanes and other natural disasters strike, they can cause chaos, product shortages and suffering. Supplies are often short in disaster areas, with customers frantically searching for essential items. However, adept use of sophisticated information tools allows retailers and suppliers to moderate the effect of natural disasters by "weatherproofing" the supply chain. That means diverting product shipments, placing inventory in forward locations and anticipating potential spikes in demand.

An example of the effectiveness of weatherproofing the supply chain is a large retail chain's response to Hurricane Katrina in 2005. The retailer used its enormous distribution network to fully stock its shelves and bolster store inventories ahead of time. It was fully prepared for massive increases in demand before and after the hurricane struck. While state and federal officials were widely criticized, the retailer was lauded for its logistical efficiency and careful disaster planning. The company reportedly had 45 tractor-trailer trucks full of goods ready at its Brookhaven, Mississippi distribution center before Katrina struck.

Behind the scenes, the retailer's state-of-the-art information systems played a key role in making sure the right supplies were in the right location at the right time. The company's Hurricane Katrina plan is an excellent illustration of the two major issues in weatherproofing the supply chain: information transparency and responsiveness.