The retail supply chain impact of Hurricane Sandy

An article in the New York Times (November 4, 2012) describes the impact of hurricane Sandy on the retail supply chain, action taken by companies and the possible consequences. With fuel supply shortages, FedEx started using fuel tankers to supply its trucks. Many warehouses with inventory for the holiday season so product damaged beyond recovery. The ports in NJ remained damaged thus preventing goods from coming in. Expected damaged due to retail promotions post-Thanksgiving risked being affected by stockouts with inventory being delayed. How should retailers react to these supply chain challenges, it is better to issue rainchecks or cancel promotions ? Should customers be encouraged to shop from the website so that the pool of inventiry can be more efficiently deployed ? Should orders be placed with domestic suppliers, albeit at a higher cost, to keep supply levels ? Or should product be air shipped from global sources ? Is there time to explore these alternatives or has time run out for this Christmas season for retailers ?

About aviyer2010

Professor
This entry was posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , , , , , . Bookmark the permalink.

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