Winter Storms Spark Supply Chain and Procurement Challenges

Winter storms gripping parts of the US are causing significant disruptions, tragically claiming lives, halting travel and impacting supply chains.

At least five fatalities have been reported, with seven states declaring emergencies — Maryland, Virginia, West Virginia, Kansas, Missouri, Kentucky and Arkansas. The severe weather, driven by a polar vortex, highlights the critical role of procurement and logistics planning in such conditions.

Snowstorms often paralyse transportation networks, creating hazardous conditions on roads and runways.

This storm has already led to the cancellation of more than 2,300 flights and nearly 9,000 delays, leaving air freight and passengers stranded. Roads are equally treacherous, with trucks, trains and vehicles struggling to navigate icy conditions. The resulting delays ripple through supply chains, disrupting the movement of raw materials, components and finished goods.

Such delays are particularly challenging for businesses relying on just-in-time inventory systems. Any disruption can quickly lead to production halts, stock shortages and missed sales opportunities.

Additionally, power outages — affecting 190,000 homes and businesses early Tuesday — further strain operations, emphasising the need for robust contingency plans.

Effective communication is critical in mitigating such challenges.

Companies must ensure all stakeholders, from supply chain partners to customers, are informed of potential delays and revised timelines. Building flexibility into logistics plans and having risk mitigation strategies in place can reduce the impact of these unpredictable events.

Procurement for snow management

Procurement plays a pivotal role in preparing for and responding to winter weather events.

In the snow and ice management industry, securing necessary resources requires careful planning.

Competitive bidding is a common approach, where governments and airports issue tenders for equipment such as snowploughs. These contracts often include strict qualifications, ensuring that suppliers have the expertise and capacity to deliver.

Global supply chain dynamics also influence snow management operations. Rock salt shortages are a recurring challenge, with government entities often prioritised over private companies.

Manufacturers, meanwhile, strive to stay competitive by innovating equipment such as heavy-duty ploughs and de-icing agents. Technologies such as AI-powered critical event management platforms are becoming indispensable for anticipating disruptions and optimising operations during snowstorms.

NASPO ValuePoint, for example, has awarded contracts to six suppliers in its Snowplough & Grader Cutting Edges portfolio, ensuring a consistent supply of vital components for road maintenance. Such initiatives exemplify how procurement processes can ensure public infrastructure remains operational, even in severe conditions.

Building resilience in supply chains

Aebi Schmidt Group, a leading supplier of snow management equipment, provides a case study in supply chain resilience.

By streamlining its supplier network and prioritising local sourcing, the company has maintained steady operations despite global disruptions.

In 2022, its purchasing volume in Europe rose by 8%, reflecting the ongoing challenges and the need for close coordination between production, technology and procurement teams.

At the 2022 Coface Switzerland Country Risk Conference, Stefan Kaltenbach, Head of Supply Chain Management and Procurement of the Aebi Schmidt Group, was asked which concerns him most; inflation, soaring energy prices or broken supply chains.

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

Financial planning is equally crucial as rising costs driven by inflation and supply chain bottlenecks, necessitate robust budgeting and life-cycle management strategies.

Organisations must analyse their fleets to make informed decisions about equipment procurement and replacement. Adapting to current trends — such as ergonomic designs and energy-efficient vehicles — can also provide long-term savings and improved performance.

Planning for future storms

Snowstorms are a recurring challenge, but their impacts can be mitigated through proactive procurement and logistics strategies.

Clear communication, comprehensive planning and leveraging technology are essential to maintaining operational continuity.

As the industry evolves, sustainability and innovation will play increasingly important roles in shaping snow and ice management practices.

Explore the latest edition of Procurement Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.

Discover all our upcoming events and secure your tickets today.

Procurement Magazine is a BizClik brand.