Why Supply Chains are Key to Tackling Snow Storms

Winter storms sweeping across parts of the US are causing widespread disruption, claiming lives, halting travel and impacting supply chains.

The severe weather, driven by a polar vortex, has already resulted in five fatalities and led seven states to declare emergencies: Maryland, Virginia, West Virginia, Kansas, Missouri, Kentucky and Arkansas.

The crisis exposes the critical importance of supply chain resilience and logistics planning in extreme weather conditions.

How winter storms disrupt supply chains

Snowstorms wreak havoc on transportation networks, creating treacherous conditions on roads, runways and railways. This particular storm has already forced the cancellation of more than 2,300 flights, with nearly 9,000 delays reported.

These disruptions not only strand passengers but also ground air freight, a vital component in the global movement of goods. Meanwhile, road transport — essential for delivering raw materials, components and finished products — has been severely affected as trucks and other vehicles struggle to navigate icy routes.

The cascading effects on supply chains are significant, especially for businesses operating under just-in-time inventory models.

This strategy relies on precise, timely deliveries to keep production lines running. Any delay caused by adverse weather can lead to halted production, inventory shortages and lost sales opportunities.

Power outages compound the problem and the need for robust contingency plans to address such challenges is more pressing than ever.

Effective communication plays a crucial role in minimising disruption. Companies must ensure stakeholders, from supply chain partners to customers, are kept informed of potential delays and revised delivery schedules. Flexible logistics plans and risk mitigation strategies are vital for navigating these unpredictable situations.

Procurement and technology in snow management

Procurement strategies are at the heart of preparations for severe weather.

Snow and ice management operations hinge on securing resources like snowploughs, de-icing agents and road salt. Governments and private companies often use competitive bidding to source these essentials, ensuring that suppliers meet strict qualifications and can deliver during critical times.

Government contracts often take precedence, leaving private entities to contend with supply limitations.

Manufacturers, in turn, focus on developing advanced equipment, such as heavy-duty ploughs and de-icing solutions, to maintain their edge in a competitive market.

Technological advancements are increasingly shaping the industry. For example, AI-powered critical event management systems help organisations anticipate and respond to snowstorm disruptions.

NASPO ValuePoint’s contracts with six suppliers for snowplough and grader cutting edges demonstrate how procurement processes can ensure the availability of vital components, keeping public infrastructure operational even in harsh conditions.

Building resilient supply chains

The Aebi Schmidt Group offers a prime example of supply chain resilience. The company, a leader in snow management equipment, prioritises local sourcing and streamlined supplier networks. These measures have helped it maintain steady operations despite global disruptions.

In 2022, the company saw an 8% rise in its purchasing volume in Europe, underscoring the value of coordinated efforts across production, technology and procurement teams.

Stefan Kaltenbach, Aebi Schmidt’s Head of Supply Chain Management and Procurement, discussed the challenges facing the industry at the 2022 Coface Switzerland Country Risk Conference.

On inflation, rising energy costs and broken supply chains, he says: "I think they're intertwined; broken supply chains come from the other two points and that concerns us most. But also, things are changing, are very volatile, hard to forecast and require us to be really flexible."

The broader industry is also adapting to meet sustainability goals and address labour shortages.

From fuel-efficient vehicles to robotic snowploughs, innovations in fleet management help organisations optimise resources and reduce environmental impact.

Financial planning plays an equally crucial role as businesses confront rising costs linked to inflation and supply chain bottlenecks. Analysing fleets and adopting energy-efficient equipment provide long-term savings and improved operational performance.

Preparing for future challenges

Winter storms remain a perennial challenge, but proactive strategies can reduce their impact. Effective procurement, clear communication and the adoption of advanced technologies are essential for maintaining continuity during severe weather events.

As the snow and ice management industry evolves, sustainability and innovation will become even more significant. Organisations that prioritise these factors will be better positioned to manage future disruptions and achieve long-term resilience.

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