The Lean Supply Chain

Hurricane Sandy and its Effect on the Retail Supply Chain

As a resident of the hard hit New Jersey Bayshore area, I have seen firsthand the devastation that a storm of this type can cause and can now better appreciate day-to-day "luxuries" such as electricity, heat, hot water and hot food. Also, to no one’s surprise, Sandy has impacted the Retail Supply Chain on the East Coast as well.

However, as at least partially a result of becoming leaner and more agile, a recent survey found that the impact is not quite as great as was anticipated. According to Andrew Tananbaum of Capital Business Credit (CBC), their quarterly Global Retail Manufacturers and Importers Survey results indicated that "as importers and retailers no longer overstock merchandise, the storm's impact was less devastating than it could have been. However, we do suspect that some companies may have lost merchandise that was in their warehouse."

Tananbaum continues: "While respondents did indicate that it has been more difficult to ship goods, they have not reported major problems or bottlenecks at the ports where their merchandise arrives. We consider this very lucky."

So it's nice to see that good contingency planning and Lean supply chains can pay off in reducing a company's exposure to risks such as natural disasters like Sandy.

Note: Any readers who would like to assist victims of Hurricane Sandy in New Jersey can call 1-855-NJDONATE or go to this link to see how they can help.

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