Forward-looking resilience strategies businesses can implement amid the International Longshoremen’s Association (ILA) port strike, impacting ports across the East and Gulf Coasts.
The ongoing International Longshoremen’s Association (ILA) port strike has sent ripples across the US supply chain, affecting businesses relying on East and Gulf Coast ports for inventory operations. As dockworkers halt operations, companies face delays, increased costs, and unpredictable lead times. It is estimated the strike could cost the US economy $5 billion a day.
Disruptions like these present an opportunity for businesses to strengthen their supply chain strategies for the future. By adopting forward-thinking approaches—such as diversifying supply routes, leveraging technology for real-time visibility, and enhancing inventory buffers to avoid stockouts—organizations can navigate this current disruption while building long-term resilience.
Here’s how businesses can stay agile and prepared during this challenging time:
Reroute goods to avoid congestion at ports
The ability to redistribute inventory from one location to another is vital for managing stock levels effectively. This strike has closed container ports across New Jersey, Virginia, Georgia and Texas. Knowing that ships are being rerouted, businesses must turn their attention to ports where cargo is being diverted and factor in extended time delays. For example, key imports—including seasonal items like apparel, electronics, and holiday goods—can be rerouted to West Coast ports.
Leverage predictive technology to enhance inventory visibility
Amid disruptions, businesses tend to overstock as a way to get ahead of future supply bottlenecks. However, this becomes a stubborn problem for businesses that leads to excess inventory—which can be difficult to move and become a major burden on capital. According to Netstock’s report, excess stock has grown to 38% of SMBs’ inventory
Utilizing predictive analytics and inventory management tools enables businesses to better anticipate demand spikes, scenario plan, optimize inventory levels and avoid stock-outs. Netstock’s report highlights that nearly 80% of small- and medium-sized businesses (SMBs) suffer from a combination of insufficient forward planning and overstocking. With this approach, businesses (especially SMBs) can punch above their weight class, and aren’t waiting for the storm to hit—they’re already one step ahead.
Find opportunities in your inventory
Powerful AI features can analyze inventory data across all locations in real time. With this approach, businesses can identify critical issues within their inventory and provide actionable recommendations, enabling them to prevent stockouts before they even occur. For example, with Netstock’s Opportunity Engine, an inventory opportunity can be identified within 90 seconds. Since its launch in June 2023, over 278K inventory opportunities have been identified.
Build resilience through collaboration
Businesses should consider fostering collaboration within supply chain networks, and establish open communication channels with key partners, suppliers, and logistics providers. This approach allows businesses to share real-time information about potential challenges and collectively create strategies to mitigate risks. Developing and nurturing alternative souring arrangements or suppliers for commodity materials ensures businesses have backup plans for obtaining inventory necessary for operations.
“At Netstock, our mission is to bring affordable tools to mid-market businesses so they can be resilient during disruptions like this,” said Netstock CEO Ara Ohanian. “The most important thing for businesses right now is not to panic. The first instinct for businesses during disruptions is to buy more inventory. Instead, businesses should change the way they’re moving their product, optimize their inventory, and implement excess redistribution tactics when needed.”
