Corporations' Storm Plans Aim to Keep Goods, Cash Flowing Amid Hurricane Season
As hurricane season begins, large retailers are mounting preparations akin to a military campaign, storing supplies and products, training employees, reserving stocks of fuel, and moving trucks into place to refill emptied store shelves. With the first sign of a storm in the Atlantic, major retailers turn their attention to forecasters at the National Hurricane Center. Companies have developed detailed hurricane plans, learning from past experiences to prepare for potential disasters.
Key Takeaways:
- Large retailers have developed detailed hurricane plans, including storing supplies and products, training employees, reserving stocks of fuel, and moving trucks into place.
- Publix Super Markets has a well-choreographed hurricane plan, storing plastic-wrapped pallets of water and non-perishable food in stores, earmarked for use only if a threatening storm causes a run on the items or for use after a storm.
- Publix has equipped stores with generators capable of powering everything from lights and air conditioners to freezers and coolers, with 123 stores expected to be equipped by July 1 and 400 by July 2007.
- Major retailers, including Home Depot, Lowe's, and Wal-Mart, hire private forecasting companies to monitor the hurricane's trajectory and make informed decisions.
- Corporations have command centers at corporate headquarters, staffed around the clock, where decision-makers from all facets of operations work together to answer questions and make quick decisions.
- Home Depot, Lowe's, and Wal-Mart have teams ready to move in and survey damage to stores within 24 hours, prioritizing store openings to support government relief efforts.
- Retailers are working closely with government agencies to distribute essential items, such as ice, water, and food, to affected areas.
- Companies are setting up makeshift stores or "shrinking the store" by closing off non-essential areas, leaving essential recovery products available.