PAM Executive Roundtable

STORAGE IS A SYSTEM, NOT JUST A TANK

Different leaders see different risks. What’s your greatest exposure heading into winter?

August 4, 2026 · By Marco C. Perez

Web Edition

Storage Strategy + Winter Readiness

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Today’s Question

Storage becomes one of the most critical factors in protecting customers and maintaining operational stability during the winter.

But leaders do not always agree on where the greatest exposure lies.

We asked a simple question:

When you review your storage position, what creates the greatest exposure: capacity, location, replenishment, inventory discipline, or contingency planning?

Storage exposure shows up in many ways—and the right decisions today create flexibility when winter doesn’t go as planned.

Use these perspectives to challenge assumptions, strengthen your plan, and protect what matters most: customers, operations, and reputation.

Five Perspectives From the Executive Roundtable

1. WE NEED MORE CAPACITY

Peak demand or longer replenishment cycles can outpace available storage, leaving operations exposed.

Leadership considerations

  • Verify true capacity needs
  • Model peak demand scenarios
  • Plan for flexibility, not just average

2. CAPACITY IS NOT THE PROBLEM; LOCATION IS

Storage may be adequate overall but poorly positioned to serve customers in high-demand or fast-growing markets.

Leadership considerations

  • Analyze by territory and demand
  • Position storage closer to risk areas
  • Align with growth and seasonal shifts

3. REPLENISHMENT IS THE REAL CONSTRAINT

Even with enough storage, slow or unreliable replenishment creates vulnerability when demand spikes or disruptions hit.

Leadership considerations

  • Measure full replenishment cycle
  • Assess carrier and terminal reliability
  • Build alternatives and flexibility

4. INVENTORY DISCIPLINE CREATES THE EXPOSURE

Storage is only valuable if inventory levels are managed to meet demand and respond to changing conditions.

Leadership considerations

  • Set clear targets and reorder levels
  • Monitor and adjust frequently
  • Act early, not react late

5. THE MISSING PIECE IS CONTINGENCY PLANNING

Operations run smoothly until something fails. A strong backup plan protects customers and reduces stress.

Leadership considerations

  • Define secondary supply options
  • Plan transfers and alternate routes
  • Prioritize critical customers

Leadership Action

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