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Ready, Set, Go: Shoring Up Supply Chains for the 2014 Holiday Season

by Bridget McCrea
Contributing Writer,

If the 2013 holiday season taught companies anything, it's that supply chain disruptions can really upset customers. With both FedEx and UPS coming under fire for not being able to deliver holiday gifts on expected schedules, expect to see companies paying even more attention to their supply chains as the hectic season quickly approaches.

Holiday sales activity should be brisk this year, if the National Retail Federation's (NRF) forecasts are on target. The group expects US sales in November and December (excluding autos, gas, and restaurant sales) to increase a healthy 4.1 percent to $616.9 billion, higher than 2013's actual 3.1 percent increase during that same timeframe.

Import cargo volume at the nation's major retail container ports is also expected to see a final surge and set a new monthly record in October as the holiday season approaches, according to the NRF. This surge could impact companies' ability to effectively manage their supply chains through the rush.

"Increasing congestion at the nation's ports as well as the continuing West Coast labor negotiations are ongoing concerns and retailers are making one last push to make sure they're stocked up for the holidays," NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said, in an NRF press release. "Retailers are working hard to make sure customers can find what they're looking for regardless of what happens at the ports."

Ryder System's Steve Sensing writes that with millions of people lining up - or logging on - for deals, retailers know the success of Black Friday rests on a strong supply chain. "Preparations for Black Friday begin long before customers get in line, with supply chain managers putting their strategies in ...

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About Bridget McCrea

Bridget McCrea covers business and technology topics for various publications. She can be reached at bridgetmc@earthlink.net.

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