Navigating the murky waters of market disruption: Three tips for providers mitigating potential port strikes

By Kayla Green, Vizient

As Oct. 1 nears, so does the threat of strikes for U.S. East Coast and Gulf Coast ports.

What's happening: The International Longshoremen Association (ILA), representing 70,000 dockworkers, is at an impasse with the U.S. Maritime Alliance (USMX) over contract negotiations, with wage increases and opposition to automation at the heart of the dispute. The ILA's master contract with USMX is set to expire Sept. 30.

Why it matters: U.S. East Coast and Gulf Coast ports account for 43% of all U.S. imports, and a strike could disrupt the flow of goods across six of the 19 busiest U.S. ports, including New York, Savannah and Houston.

The potential strike raises concerns over supply chain disruptions, with importers shifting their strategies in anticipation, including rerouting cargo ships back to U.S. West Coast ports.

How we're helping navigate this challenge: Vizient has engaged suppliers to understand potential impacted categories and mitigation strategies they have already implemented, including switching ports, using air freight where possible and partnering with end-to-end third-party logistics (3PL) providers to improve visibility and real-time decision-making.

There are several additional strategies in place to help providers should a supply shortage occur.

• Vizient has a dedicated supply assurance team that helps providers keep up to date on supply issues, including providing information and resources when supply challenges arise. Alongside that team, the Shortage Surveillance and Readiness Team (SRRT) harnesses Vizient's analytics, clinical, sourcing and government relations expertise to identify potential drug shortages, assess their criticality and communicate solutions to providers. Together, they work with suppliers to gather information and gain insight into contingency plans to help providers navigate supply constraints.
• Vizient Reserve drives additional dedicated inventory of essential supply and medications for committed providers. To date, more than 3.7 million units of medications have been accessed through the program.
• Vizient partnered with Supply Risk Solutions (SRS) in 2022 to provide automated supply chain disruption monitoring and risk prevention for Vizient providers. The SRS platform maps supplier manufacturing locations, automates disruption monitoring and tailors risk prevention measures. The Critical Supplies Management (CSM) program is a Vizient offering with a dedicated program advisor who uses provider-specific analytics and the SRS platform to proactively identify risk and mitigate disruptions.

What providers can do to prepare: Adopt these proactive strategies to prepare for potential disruptions and ensure continuity and resilience in the supply chain.

• Refer to disruption briefs: Review the market disruption brief regularly to keep up to date on possible disruptions caused by the potential strike.
• Leverage Vizient Reserve: The program can help with critical categories impacted, including medications and supply.
• Diversify essential products: Assess the ability to minimize concentration risk and consider domestic sourcing options. Tools like the CSM program provide dedicated support to assess concentration risk and plan for future capabilities.

Visit the website to learn more about Vizient's approach to supply assurance.