RSMUS.comNatural disasters like Hurricane Milton, which made landfall on Florida’s Gulf Coast in October 2024, highlight the critical need for retailers to have a robust supply chain management plan in place. The storm, along with its predecessor, Hurricane Helene, has led to severe disruptions across Florida’s ports, including Port Canaveral, Tampa Bay, and Key West. With inbound cargo traffic halted, retailers face the risk of delayed or unavailable products, exacerbating existing supply chain vulnerabilities.
Supply chain disruptions caused by natural disasters are not new, but their frequency and severity are increasing. Ports, airports, and roadways are critical links in the retail supply chain, and when they shut down—as seen with the closures of major Florida ports—there is an immediate ripple effect. Retailers dependent on just-in-time inventory systems are particularly at risk of stock shortages and delays. Without a solid contingency plan, businesses could struggle to meet customer demand, especially for essential goods.
Retailers must develop disaster preparedness strategies that include supply chain risk assessments, diversified sourcing, and contingency plans. For example, having alternative ports or transportation routes identified in advance can mitigate the impact of regional disruptions. Additionally, retailers should invest in technology that provides real-time visibility into their supply chain, allowing them to react quickly and reroute shipments as needed.
Hurricanes Milton and Helene illustrate the importance of having a resilient and adaptable supply chain plan. Retailers who fail to prepare may face prolonged operational delays, revenue loss, and dissatisfied customers, making it essential for businesses to proactively plan for these inevitable disruptions. Contact us today and see how RSM can help your business.
