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How to Overcome Nature's Impact over Global Supply Chains

Much of the globe is in the middle of typhoon or hurricane season – a trying reality for the residents of Florida after Hurricane Irma devastated majority of the state.

Typhoons and hurricanes force airlines to cancel flights, close ports and shut down highways, which make them extremely disruptive to global supply chains. You too likely have contingency plans to prepare for these natural disasters disrupting your supply chain all over the world.

But what if you could see them coming even before the main stream news media started covering them?

Access to real-time data

How much more effective would your planning be if you could get real-time information to help you identify potential risks before they can wreak havoc? magNET-T™ - the foundation upon which all of our solutions are built - enables you to do just that.

When you use Gravity’s set of integrated apps, you’re leveraging the ability of magNET-T™ to monitor many data sources in real-time. That information is constantly fed to our proprietary algorithms and machine learning technologies that categorise and prioritize the events with the accuracy and speed you need to jump into action. We like to say we tell you today what is going to happen tomorrow. 

Develop a contingency plan for Mother Nature

Why do you need a contingency plan for Mother Nature? Consider that weather- and climate-related disasters have caused $2.4 trillion in economic losses and nearly 2 million deaths globally since 1971. The Atlantic hurricane season typically runs from the beginning of June to the end of November, and the Pacific typhoon season from May to October. This means hurricanes and typhoons are a threat to strike somewhere in the world for at least half of the year.

Developing a contingency plan involves making decisions in advance about the management of human and financial resources, coordination and communications procedures, and being aware of a range of technical and logistical responses. And there’s no better organization to turn to for advice than the International Federation of Red Cross and Red Crescent Societies (IFRC) - the world's largest humanitarian organization.

IFRC’s Contingency Planning Guide

You can download a free copy of the IFRC’s Contingency Planning Guide here, but I’ll give you the short version.

According to the IFRC, you begin by asking yourself three basic questions:

  1. What is going to happen?
  2. What are we going to do about it?
  3. What can we do ahead of time to get prepared? 

The key: supply chain visibility

Answering all three requires you to have one thing: information. Your ability to collect and analyze data in real-time is critical to determining acceptable risk levels. To illustrate this point, let’s imagine you’re planning to ship goods by ship from Shanghai to Melbourne, and the boat leaves the Port of Durban tomorrow morning. 

Logisticians need to take into account that more than two-thirds of the globe’s surface is water. This is not only directly important for goods transported by the maritime system, but also because storms emanate from the sea mass surrounding land. It is difficult to adjust operations to allow for an acceptable level of risk for your cargo’s journey, particularly because that risk can vary so widely. For example, consider how difficult it can be to adjust operations to allow for an acceptable level of risk as cargo moves between Florida and Buenos Aires, where risk volatility due to storms can vary between 1-20 percent.

With that information in hand, you play it conservatively by reducing cargo volume and a ship might arrive safely at its destination after experiencing calm seas. Awareness, consideration and preparation are key to avoiding losses.

To learn more about how our magNET-T technology works, and how it sets our platform apart from other solutions developers, check out Darren Palfrey’s post, "In Today's Supply Chain, If It's Not Real-Time It's Out of Date."

I’m certain after reading Darren’s post, you’ll want to see a live demo. Simply follow this link to try Gravity.

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