Natural disasters like hurricanes, floods, tornadoes, and winter storms can wreak havoc on communities and the businesses that serve them. One of the most significant impacts we see in the wake of such events is the disruption to supply chains. 

Even if your business isn’t directly in the disaster zone, you can still feel the ripple effects. As a business leader who has faced these challenges, I want to offer some compassionate and practical advice on how to keep your business running, both in the short and long term, during and after such disruptions.

Here are five actionable tips to help you manage supply chain disruptions caused by natural disasters.

1. Be Honest and Proactive While Communicating With Customers

The first step in managing supply chain issues is clear customer communication. When disaster strikes, whether it’s impacting your ability to manufacture, ship, or source materials, the worst thing you can do is leave your customers in the dark. Instead, be upfront and proactive about any changes to your operations.

Reach out to your customers as soon as possible to let them know what is happening and how it may affect their orders. Transparency builds trust, and your customers will appreciate your honesty in times of crisis. If they are informed ahead of time, they are more likely to understand delays or complications.

Set realistic expectations and provide regular updates on any potential delays. If you can offer alternative solutions, such as partial shipments or prioritizing certain orders, do so. Keeping an open line of communication ensures that your customers feel valued and know that you’re doing everything possible to meet their needs.

2. Adjust Your Financial Projections and Department Goals

Supply chain disruptions often result in increased costs, so preparing for these changes as soon as possible is essential. A common mistake businesses make is underestimating the financial impact of delays or shortages. When natural disasters affect their ability to source materials or complete projects on time, their costs will inevitably go up.

Revisit your financial projections and adjust them based on the new realities of your supply chain. This might include accounting for higher shipping fees, increased material costs, or even potential lost sales due to delayed deliveries.

It’s also wise to evaluate the impact of the natural disaster on cash flow. If your customers are affected by the disaster, they may take longer to pay or even put their projects on hold. Adjusting your projections early on can help you manage these financial hurdles without panicking when the bills start piling up.

In addition, talk to your financial partners and lenders. If you foresee challenges meeting your obligations, proactively seek flexible payment options or extended terms. Having a clear picture of your financial landscape will allow you to make better decisions as you navigate the disruption.

3. Temporarily Subcontract Jobs or Find Suppliers Outside the Affected Area

One of the quickest ways to minimize the impact of a disrupted supply chain is to diversify your suppliers. When disaster strikes, having all your suppliers in the affected area can devastate your operations. You can keep your production moving by subcontracting or identifying suppliers from unaffected regions.

This might require building new relationships quickly, so it’s essential to start thinking about backup options well in advance of a potential disaster. If possible, make a habit of regularly reviewing and updating your list of alternative suppliers or vendors. You might not always need to use them, but having these relationships in place ensures you can pivot quickly when your primary supply chain is disrupted.

Also, consider subcontracting some of your work to vendors equipped to handle your needs. If you can’t source all the materials you need to produce in-house, outsourcing specific tasks to unaffected suppliers or manufacturers can be a great solution to meet demand. At the same time, you rebuild your primary supply chain.

4. Be the Squeaky Wheel With Suppliers and Service Providers

During a natural disaster, everyone is scrambling. Orders can get delayed, misplaced, or even lost in the chaos. This is why it’s important to be the “squeaky wheel” when dealing with suppliers. Frequent, polite communication can go a long way in ensuring your orders aren’t forgotten.

Reach out to your suppliers regularly to check on the status of your orders. While you don’t want to be overbearing, staying on top of the situation will ensure your needs are not neglected. With so many businesses affected, the ones that communicate consistently and politely are often prioritized when resources become available again.

Remember, you aren’t just following up on the immediate order. You are also fostering relationships with suppliers. Showing understanding and flexibility can help you negotiate better terms in the future, even if the current situation is out of everyone’s control.

5. Leverage Available Technology While Services Recover

Technology can be a lifesaver in the face of disrupted supply chains and communication networks. Even if parts of your usual operations are down, technological solutions can help you keep things moving.

For instance, consider using mobile hotspots to stay online if your internet connection is compromised. Many phones now allow you to use them as Wi-Fi hubs, keeping your devices connected even in low-internet areas. Similarly, if video calls aren’t an option, don’t hesitate to fall back on traditional phone calls, which can still facilitate clear and immediate communication with suppliers and customers.

Also, make the most of cloud-based systems that allow you to access data and manage projects remotely. Many cloud platforms are designed to function even when local infrastructure is compromised, helping you stay organized and productive during a disaster. Leveraging the technology that remains operational can minimize the disruption to your business, allowing you to stay connected and keep moving forward.

Natural disasters are unpredictable and disruptive, but with the right strategies, your business can weather the storm. If you need assistance with precision fabrication or custom solutions during these challenging times, Custom Precision Technologies is here to help. From design to manufacturing, we’ve got your back and are ready to support your business with the high-quality, rapid services we’re known for.