Temple U. Professor Misty Blessley shares her insights with our readers monthly.
The Atlantic hurricane season in the U.S. runs from June through November, with most hurricanes making landfall between Florida and Texas. The National Oceanic and Atmospheric Administration (NOAA) has forecasted that the 2024 hurricane season could be one of the busiest on record. Hurricane Beryl, a Category 5 storm that struck Houston on July 8, is the earliest such hurricane in Atlantic history, setting a severe tone for the season. Ensuring access to supplies when and where they are needed is crucial for the region’s ability to withstand and recover from hurricane-related disruptions.
Here is the contingency plan for Fastenal, an international industrial and supply solutions company. The season began with Fastenal’s onsite team stationed
at a Phillips 66 refinery in Texas, directly in Hurricane Beryl’s path. Due to the sensitive nature of their operations, refining companies must manage weather events with extreme care, which is why Fastenal staffs these sites with onsite personnel. Hurricane Beryl’s impact went beyond refineries, temporarily halting operations across Houston’s maritime, air, and motor carrier sectors, affecting numerous businesses.
In addition to its mitigation efforts with Phillips 66, Fastenal’s plans to bolster the region’s resilience, include:
A corporate communication channel for providing rapid support to customers in affected areas.
Ample stocks of hurricane-specific supplies, such as generators and water, at four major distribution centers (Dallas, Houston, Atlanta, and Jackson, Mississippi).
Having distribution teams on standby to deliver supplies to affected areas as soon as access is granted.
A private fleet allowing for quick and flexible response.
As highlighted in Chapter 11 of your Heizer/Render/Munson text, “Companies need to focus not only on reducing potential disruptions but also on how to prepare for responses to inevitable negative events.” Fastenal credits the company’s dedicated staff and advanced technology—such as its warehouse management system, which can handle both planned and unplanned orders—for its ability to respond to crises like Hurricane Beryl.
Classroom discussion questions:
1. In Table 11.3 supply chain risks and tactics are covered. Which of the risk reduction tactics is 2most beneficial in the event of a catastrophic weather event?
2. Review other weather-related disruptions and identify contingency plans. Hint: Icelandic volcano eruptions and Texas snowstorms