This post is written in response to Christopher Merritt’s blog post “Hurricane Sandy is Affecting Retail Supply Chains”.
Here’s a short news report from ABC news about Hurricane Sandy.
Businesses have been drastically affected by Hurricane Sandy. Their inventory, damaged; Transportation logistics reduced in frequency, resulting in businesses being unable to fulfil consumer demand. To make matters worse, the holidays are around the corner which usually means high demand for goods. Furthermore, third party transportation cost have been increasing as there is a ‘shortage of capacity and fuelling affecting their service to customers’. Christopher ends by stating that it will be a while before things go back to normal.
In my opinion, this will put a huge amount of pressure on the role of operations in the supply chain. As now, they need to double their efforts to get the right product at the right place, at the right time, in the right amount in the most efficient manner! Especially in time for the holiday season.
It is crucial at this time that the operations manager and marketing manager have excellent communication. I have to agree with Christopher that the situation will only improve slowly. Therefore only high demanded items should be supplied and less of the low demanded. That way cost will be saved from transportation, as there will be a better chance of sales of a highly demanded good than a lower one. Which will ultimately lower average cost in the short run. Making the best of a bad situation.
For more information on Hurricane Sandy click here.
Sources:
http://blog.ryder.com/2012/11/hurricane-sandy-is-affecting-retail-supply-chains/