Small businesses unprepared for disaster

With hurricane season approaching, government agencies are reminding communities to prepare for disasters.

Companies also need to be prepared in the event of an emergency. Unfortunately, two-thirds of small businesses do not have a disaster preparedness plan, according to a report by FEMA. A hurricane or other natural disaster can cause millions of dollars in damage and disrupt communities for days or weeks. Businesses in hard-hit areas need to be able to respond quickly to reestablish the supply chain and perform other essential functions.

40% of firms impacted by a disaster do not reopen. Working with a logistics specialist can help companies establish procedures for responding to a disruption, keeping the business operational. These policies can even be implemented during minor delays to save time and money.

It is important to manage inventory and supply following a disaster. Road closures and damages can prevent merchandise from getting through, while storms may destroy product in warehouses and stores. A reverse logistics firm can clear unwanted product.

A proper distribution network can make sure that the needed supplies are delivered even following an emergency. Establishing a clear plan for handling disruption can ensure that any business is able to keep operating.

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