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Impact of Hurricane Sandy on Retail Supply Chains

BY CSA STAFF

By Chris Merritt, Ryder

Natural disasters like Hurricane Sandy are devastating. They impact people’s lives and livelihood. In addition, as we’ve learned from recent years, they can result in significant supply chain disruptions. Following the storm, we are seeing three issues impacting retail supply chains – power, fuel, and people.

Power continues to be a significant challenge. Retail distribution centers in the northeast have been impacted by severe flooding and power outages. Even those with generators are not operating at full capacity. We are also seeing fuel shortages in the Northeast, which are impacting transportation. Ryder’s extensive fuel network does help to mitigate the supply issue for our customers as we are able to bring in fuel from neighboring states. However, shortages will cause third-party carrier rates to increase, impacting retailers’ bottom-lines, at least for the short term. Labor will also be a challenge. In times of disaster, people have personal issues that must be dealt with – everything from childcare while schools are closed, to damaged homes that need to be attended to. Those businesses that do have power and fuel will continue to have a hard time staffing their warehouses with people to do the work.

Shipping delays are also expected. The New York/New Jersey ports are second only to the Long Beach/Los Angeles ports in container volume, and with retailers gearing up for Black Friday, Hurricane Sandy is a major disruption. Most retailers split their distribution networks between east and west coast ports. The ones expecting shipments from the east coast will undoubtedly have goods sitting on ships. While most retailers should have enough inventory for their regular replenishment items, we expect to see out of stock situations up and down the east coast for promotional items retailers have ordered and advertised for Black Friday.

It’s important to also recognize that the impact of a storm like Sandy is greatly affected by what is done before the storm ever hits. We collaborated with many of our retail customers in the days leading up to the storm, repositioning inventory, pulling inventory forward, and even expediting advanced shipments of fast selling goods consumers needed for storm preparedness. Hurricane Sandy is once again a reminder that supply chain planning can play a huge role in mitigating risk and disruption.

Chris Merritt is VP/GM, retail supply chain solutions for Ryder.


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F.Benitez says:
Apr-16-2013 07:10 am

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F.Benitez says:
Apr-16-2013 07:10 am

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P.Lopez says:
Mar-29-2013 07:18 pm

We are also seeing fuel shortages in the Northeast, which are impacting transportation. Ryder’s extensive fuel network does help to mitigate the supply issue for our customers. chat random

P.Lopez says:
Mar-29-2013 07:18 pm

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P.Lab says:
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P.Lab says:
Mar-06-2013 08:29 pm

Labor will also be a challenge. In times of disaster, people have personal issues that must be dealt with – everything from childcare while schools are closed, to damaged homes that need to be attended to. Those businesses that do have power and fuel will continue to have a hard time staffing their warehouses with people to do the work.essayontime fraud

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Williams-Sonoma makes Quebec debut

BY CSA STAFF

SAN FRANCISCO — Williams-Sonoma will open its first store in Quebec, Canada, on Nov. 3. Located at Carrefour Laval in Laval, Quebec, the new store marks Williams-Sonoma’s eighth location in Canada, and will be the first to showcase a brand new store design.

“I am thrilled to continue our expansion in Canada by opening our first store in Quebec,” said Laura Alber, president and CEO, Williams-Sonoma, Inc. “We’re excited that the Williams-Sonoma brand will pave the way in Quebec, where we look forward to joining such a vibrant culinary community.”

The new store design includes exciting interactive features that will engage customers’ sense of taste, touch and smell. A newly designed, modern kitchen will be a focal point of the store, providing abundant space for chef appearances, technique lessons, and cooking classes. Demonstration stations throughout the store will allow for quick and easy access to the latest cooking tools, electrics, cookware and cutlery, enabling customers to experience and test products. In addition, the new store layout is designed to make shopping even easier, with several terminals where customers can complete purchases throughout the store.

The 8,000 sq. ft. store will open with the late fall collection, and a preview of the holiday assortment, offering an exceptional selection of cookware, bakeware, cooks’ tools, cutlery, electrics, housewares and linens, along with distinctive foods, cooking ingredients and a comprehensive cookbook library. The store also will feature collections and products from local, Quebec-based companies that share the brand’s culinary passion.

Currently, there are seven Williams-Sonoma stores in Canada: Sherway Gardens, Toronto Eaton Centre, Yorkdale Shopping Centre, Bloor Street West in Toronto; West Edmonton Mall in Edmonton; Chinook Centre in Calgary and Granville Street in Vancouver.

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Electrolux joins Sandy relief effort

BY CSA STAFF

CHARLOTTE, N.C. — Appliance manufacturer Electrolux has joined the effort to help with Sandy relief. The company has announced a $100,000 commitment to the American Red Cross Disaster Fund. In addition, the company will match employee contributions up to another $100,000.

"Our thoughts and concerns are with everyone affected by this storm and the resulting floods that have caused significant damage along the East Coast,” said Jack Truong, president and CEO of Electrolux Major Appliances, North America. “We are pleased to be able to do our part in helping families during this time.”

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