Exiger Taps Kit Conklin for SVP, Risk and Compliance

Winter Storms: A Lesson in Supply Chain Fragility and the Need for Visibility

January 30, 2025

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Acute climate events will be a major risk for supply chain disruption in 2025, say Exiger experts in the new white paper, Supply Chain Resilience: 7 Factors to Watch in 2025. These events can include hurricanes and cyclones, droughts, or severe snow and ice storms.

Lessons learned from severe winter weather: A storm four years ago disrupted many U.S. supply chains — including the manufacturing of medical devices. In the article below, John Boullie, Global Head of Healthcare at Exiger, looks at how that winter storm’s impact revealed the necessity for supply chain visibility to avoid climate-related disruptions.

The Wrath of Uri

In February 2021, Winter Storm Uri wreaked havoc across much of the United States, leaving a trail of devastation in its wake. Among the many sectors impacted, the petrochemical industry bore the brunt of the storm’s wrath.

With its epicenter in Texas — home to many of the nation’s petrochemical plants — the storm disrupted operations on an unprecedented scale, forcing numerous facilities to declare force majeure. This legal declaration, allowing companies to avoid liability for failing to fulfill contracts due to unforeseen events, signaled a cascading crisis that rippled across industries reliant on these facilities.

One critical consequence of this disruption was the acute shortage of resins, essential components in manufacturing a wide array of products. Notably, the shortage severely impacted the production of life-saving medical devices. Polymers like polypropylene and polycarbonate, used in medical-grade tubing, syringes, and ventilator components, suddenly became scarce, threatening the ability of healthcare providers to meet urgent patient needs. As manufacturers scrambled to allocate supply and mitigate disruptions, the incident underscored the vulnerabilities inherent in modern supply chains — and the urgent need for better visibility and transparency.

The Challenges Exposed

The petrochemical supply chain is a complex, interconnected web involving raw material suppliers, processors, and end-product manufacturers. Winter Storm Uri exposed just how fragile this network can be when faced with unexpected shocks.

Geographic concentration: The large number of petrochemical facilities in Texas left the industry uniquely vulnerable to region-specific events.
Limited visibility: Many companies lacked the ability to see beyond their immediate suppliers, making it nearly impossible to anticipate upstream disruptions or identify alternative sources quickly.
Reactive responses: Without real-time data or predictive analytics, businesses were forced into reactive crisis management, which often exacerbated delays and shortages.

These systemic challenges not only hampered recovery efforts but also illuminated the need for proactive solutions that prioritize resilience and agility in supply chain management.

A Platform to Enable Global Supply Chain Resilience

Exiger’s supply chain visibility and risk management platform, 1Exiger, offers a solution to these challenges. Leveraging advanced technology and data analytics, the platform provides end-to-end insights that empower organizations to anticipate, adapt, and thrive amid disruptions. Here’s how 1Exiger could have mitigated the impact of Winter Storm Uri:

Comprehensive visibility: By mapping the entire supply chain — from raw material suppliers to end consumers — 1Exiger enables organizations to identify potential vulnerabilities and dependencies. In the case of resin shortages, this visibility would allow manufacturers to pinpoint alternative sources and mitigate risks before disruptions escalate.
Real-time monitoring: Exiger’s platform continuously tracks global supply chain data, offering real-time alerts about events that could impact operations. Early warnings about the storm’s potential to disrupt petrochemical production could have spurred proactive measures, such as pre-storm stockpiling or sourcing from unaffected regions.
Predictive analytics: Using machine learning and predictive models, 1Exiger helps organizations foresee the cascading effects of disruptions. For example, it could estimate how a shortage of polypropylene might affect medical device production globally, enabling better allocation decisions.
Collaboration and communication: The platform facilitates seamless communication across supply chain partners, ensuring that all stakeholders are aligned and equipped to respond effectively. This coordination is critical in high-stakes industries like healthcare, where delays can cost lives.

Building Resilient Supply Chains

Uri raised a stark reminder of the fragility of global supply chains and the high stakes of failing to address vulnerabilities. For industries that produce critical, life-saving goods, these lessons are particularly urgent. By embracing solutions like Exiger’s supply chain risk management platform, organizations can transition from reactive crisis management to proactive risk mitigation.

In an increasingly unpredictable world, supply chain resilience and transparency are no longer optional — they are essential. Exiger’s innovative approach offers a blueprint for navigating the complexities of global supply chains, ensuring that vital resources remain accessible, even in the face of unprecedented disruptions.

Stay ahead of potential disruptions and safeguard your supply chain. Contact us to learn how Exiger can help build resilience for your organization.

[Download Now: Supply Chain Resilience: 7 Factors to Watch in 2025.]

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