Hurricane Milton, a Category 4 storm, is expected to make landfall on the west coast of Florida on Wednesday, bringing torrential winds and rain. Millions of residents have been ordered to evacuate. The storm is predicted to cause significant damage to the Tampa/Fort Myers region, with potential losses estimated between $50 and $175 billion.
Businesses in the region are closing down in preparation for the storm, highlighting the importance of having contingency plans in place. Supply chain expert Lisa Anderson emphasizes the need for strong relationships with suppliers, especially in times of crisis. She advises treating suppliers as partners rather than vendors, focusing on collaboration and trust.
Julie Swann, a professor of industrial and systems engineering, notes that the increasing frequency of natural disasters due to climate change makes it even more critical for businesses to prepare in advance. She suggests that every dollar invested in planning can help mitigate $7 or more in disaster effects.
Hurricane Helene, which recently tore through the state, caused severe flooding and widespread damage. The storm resulted in 227 deaths across six states, making it the deadliest storm since Hurricane Katrina. National businesses like Home Depot and Lowe's provided relief efforts in the form of monetary aid and shelter.
Anderson emphasizes the importance of building strong relationships with suppliers, even competitors, to ensure backup support during times of crisis. She warns that a month of disruption could have severe consequences for a business.
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Swann suggests that disruptions caused by natural disasters are becoming more common and that businesses should focus on building strong relationships with trusted suppliers rather than panicking. She advises against panic buying, as it can create further variability, increased costs, and reduced availability.