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Sälud China: When Frozen Yogurt Faced a Jam
Case 9 50 2022 005
Languages : 
  • English
Keywords: 
  • supply chain disruption,
  • inventory management,
  • international supply chain
Year of production : 
2022
Registration date : 
2022-09-20
Teaching notes included : 
Yes
Abstract

In late March 2021, a blockage in the Suez Canal disrupted the next delivery of imported ingredients for Sälud China (Sälud), a frozen yogurt retail chain. In a context in which both the length of the blockage and the time to recover from the backlog were uncertain, Hang Su, the business development manager at Sälud, would have to act quickly to mitigate the negative impact of possible shortages of key ingredients. According to historical sales data, China’s demand for frozen yogurt increased in April, and the company had to keep its supply chain running smoothly despite supply shortages in Europe. Su knew that, in addition to solving the immediate problem, Sälud would have to develop a more long-term approach to reducing the possibility of future disruptions.

Primary domain : 
Logistics and operations management
Secondary domain : 
Not available
Sectors : 
  • Consumer goods
Source : 
HEC Montréal
Type : 
Traditional case (Decision-making case)
Type of data used in the production of the case : 
Factual data that is not public wherein the identity of the company/person is disclosed
Event location : 
China
Year of start of the event : 
2021
Year the event ended : 
Not available
Business size : 
Large enterprise
Teaching objectives
  • Understand how supply chain disruptions affect business operations and performance.
  • Be able to develop a contingency plan for specific contexts and operational strategies.
  • Be able to think critically about ways to increase supply chain resilience over the long term.