There are many unforeseen events that can derail the supply chain. Extreme weather conditions and shifts in carrier capacity are two of the usual culprits. The industry typically has little time to implement contingency plans to keep shipments moving during sudden events. We all learned this lesson during the global pandemic. 

But now that the El Niño climate pattern is here, uncertainty is even closer to home. Hotter than usual conditions are already wreaking havoc on crops in certain U.S. states, and causing mass bird deaths along Mexico’s Pacific coast. As El Niño takes hold and intensifies across a significant portion of the U.S. throughout the summer, there is still time to build agility and resilience within supply chains. 

El Niño’s ripple effect on the supply chain will be felt at every level — from the bill of materials, all the way up to the boardroom. The key to navigating El Niño is recognizing past patterns, and taking proactive measures to protect operations. These four strategies can help the supply chain industry better adapt to the fallout of this unpredictable weather phenomenon.  

1. Diversify Supplier Networks 

If your company is tethered to one carrier or just a select few, El Niño will likely have a stronger impact on the ability to ensure a continuous flow of goods. Even if only one region is significantly affected, companies could experience challenges in getting essential raw materials needed for production and successfully delivering final products to their intended destinations.  

By diversifying supplier networks, companies can create a safety net to protect against the disruptive effects of flooding, landslides, blizzards, and other weather events during El Niño this year. It is crucial to think strategically and explore carriers and 3PL partners outside of your normal channels. This approach infuses the supply chain with a new kind of resilience, ensuring it can withstand potential future disruptions. 

2. Strengthen Collaboration  

During any major disruption, the key is to manage customer expectations and communicate potential delays or changes. But if a problem involves a multitude of shipments being delayed it can be a time-consuming, arduous task to reach out to every customer impacted.  

Robotic process automation (RPA) can optimize business operations and customer communications. This type of automation combines RPA, artificial intelligence (AI), machine learning (ML), natural language processing (NPL) and logistics terminology, and integrates with email and a TMS/ERP system to provide up to the minute customer updates. 

3. Drive Multi-Modal Efficiency 

Maintaining transportation options is key for mitigating disruptions. Relying solely on a single transportation mode, such as over-the-road trucking, which may have worked well in the past, may pose limitations when it comes to receiving and shipping products. 

Having access to a multi-modal infrastructure that can leverage two or more transportation modes to complete shipments unlocks possibilities for overcoming disruptions caused by unforeseen weather events. Embracing multi-modal transportation not only helps mitigate the impact of such events but also brings about additional benefits. These include cost reduction, lower carbon emissions, decreased fuel expenses, enhanced safety and security measures, decreased highway congestion, and mitigating the ongoing shortage of truck drivers. 

4. Embrace Technology  

If you don’t know where a shipment is, you can’t communicate delays or changes to customers and employees. That makes having visibility into shipments more important than ever as El Niño stays with us through the early part of 2024.  

Leverage automated transportation management systems (TMS) to have visibility, transparency and control during turbulent times. With a TMS, organizations can track events in real time and get automatic alerts when exceptions occur. A TMS can help shippers be more proactive by knowing where raw materials or shipments are coming from, when they will arrive and whether alternative sources are needed for impacted areas.  

Thriving Amidst Unpredictable Supply Chain Challenges 

Drawing from the past, the supply chain industry can leverage the significant insights provided by historical data to effectively prepare for the impending El Niño. Scientists predict an exceptionally intense El Niño pattern, reminiscent of the patterns observed in the early '80s and late '90s. If these predictions come true, the repercussions are expected to persist in the supply chain for years after the pattern shifts. By proactively integrating flexibility and resilience into their supply chain operations, organizations can enhance their readiness to navigate the tide of uncertainty and disruption that lies ahead. With the ability to anticipate and adapt to future challenges, businesses can not only mitigate risks but also seize new opportunities for growth and competitive advantage in an ever-changing landscape. 

Phil Sullivan is vice president of North America enterprise managed services at Odyssey Logistics & Technology.