Background
The realization that Hurricane Harvey was to bring more than 40 inches of rainfall to greater Houston lead to pre-landfall panic buying that more than doubled sales per location. The post-storm outcome showed that it crippled our country’s infrastructure not only in Houston, but in markets supplied by Houston as well (roughly 20 percent of U.S. production).
Challenge/Objective
Most of the terminals where KAG Logistics picked up fuel were flooded; thus, no longer viable options, and the terminals that weren’t, were severely limited in supply. Once broadcasted, panic ensued and consumers lined the streets wanting to fuel their vehicles and gas containers.
Solution
KAG Logistics brought in drivers and assets from outside markets as far away as Sacramento, Detroit and Baltimore to assist in keeping fuel stocked for contracted customers. The limited options were so extreme that normal loading wait time went from 25 to 30 minutes to five to seven hours, and the average length of haul went from 25 miles to 90 miles. Based on these factors, it required multiplying available KAG 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 found the drivers accommodations, acquired them out-of-market work authorizations, 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 safe, accurate and timely.
Results
KAG Logistics brought in over 100 out-of-market drivers to fill the 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 emphasized the importance of exceptional customer service, technology solutions and the vast carrier network necessary to become the real asset in these trying times.
