Background
The realization that an approaching hurricane was to bring more than 40 inches of rainfall led to pre-landfall consumer panic buying that more than doubled sales per location. The post-storm outcome showed that our country’s infrastructure was crippled not only along the hurricane’s path, but in markets supplied by this area as well (roughly 20 percent of U.S. production).
Challenge/Objective
Most of the terminals where KAG Logistics arranged for fuel pickups were flooded; thus, they were no longer viable options. The terminals that weren’t flooded were severely limited in supply. Once broadcast, panic ensued, and consumers lined the streets wanting to fuel their vehicles and gas containers.
Solution
KAG Logistics brought in carriers from outside markets as far away as Sacramento, Detroit, and Baltimore to assist with keeping fuel stocked for contracted customers. The limited options were so extreme that normal loading wait time went from 25 to 30 minutes to 5 to 7 hours, and the average length of haul went from 25 miles to 90 miles. Based on these factors, it required multiplying available drivers’ hours by 10 to 15 times just to keep up with normal sales, and by 20 times to keep up with the consumer’s desired added volume. KAG Logistics found the carrier accommodations, acquired out-of-market work authorizations for them, and provided constant communication on the location of available fuels supply. KAG Logistics’ coordinators worked around the clock to make sure their just-in-time deliveries were made safely, accurate and timely.
Results
KAG Logistics brought in over 100 out-of-market drivers to fill the surge demand, coordinating those who could pull product from distant terminals to keep fuel stocked. This type of excellent service drives extreme customer loyalty and highly dominates market share. Amidst a disaster, KAG Logistics emphasized the importance of exceptional customer service, technology solutions, and the vast carrier network necessary to become a real partner in these trying times.
