The riots' effect on the supply chain

By Dave Alberts, Sales Director of Crimson & Co, the end-to-end supply chain consultancy

The worst night of civil disorder in living memory has again highlighted the impact that a catastrophic loss of stock can have on business profitability. Unless stock can be replenished and shops can reopen quickly, customers buying habits and preferences can rapidly change. Contingency supply chain planning, often premised on catastrophic events outside the UK, can help restore livelihoods in a short space of time. It remains to be seen whether the contingency planning model can accurately handle the issue of domestic anarchy these disturbances have produced.

Whilst we hope insurance companies will act quickly to recompense the likes of Sony from the fire at its distribution centre and the numerous retailers and cash and carry businesses from stock losses and loss of trading hours, the responsiveness of supply chains will be a crucial factor in limiting the profitability impact and helping quickly restore the livelihoods of those involved.