Supply chain management is a procedure that can be very beneficial for a company. However, the recent Hurricane Sandy highlights the need for businesses to ensure their supply can survive unpredictable events.
The New York Times article shows that many businesses in New York and New Jersey are facing a bleak fourth quarter due to the effects of Sandy. Road closures have prevented the transportation and delivery of goods, while flooded warehouses have resulted in a loss of merchandise for many companies. As businesses are entering their peak season due to Christmas orders, this is a problem that will be hard and almost impossible to overcome.

The events in New York bring forth a lesson that can be learned about supply chain management. It is often understood that keeping a large inventory of goods is not advised due to the possible changes in demand. Hurricane Sandy adds another reason to avoid a large backup of goods. Companies with weeks of supply stored in a single warehouse have loss an enormous amount of money due to a single natural disaster. The companies with a smaller inventory turnover will have avoided the magnitude of losses.
Many companies will be heavily impacted by Hurricane Sandy due to the effect that it has had on the supply chain. The impact further emphasizes the positives of short distribution channels and lower inventory turnovers in an unpredictable world.