Abandonment in Supply Chain Management
The decision of a carrier to give up or to discontinue service over a route. Railroads must seek ICC permission to abandon routes.
In the context of supply chain management, abandonment typically refers to situations where goods or orders are left unclaimed, unprocessed, or discarded at some stage in the supply chain. It can occur in various scenarios:
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Customer Abandonment:
- When customers leave their shopping carts or orders incomplete during the purchasing process (e.g., in e-commerce or physical stores).
- This is often referred to as cart abandonment in retail and online shopping.
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Abandoned Goods in Logistics:
- Goods that are left unclaimed or not picked up at ports, warehouses, or distribution centers due to issues like incomplete documentation, unpaid fees, or changes in buyer decisions.
- Such abandonment can lead to storage costs, spoilage (for perishables), or legal implications.
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Production Abandonment:
- When a manufacturing process is halted, and the production line is left incomplete. This could happen due to equipment failures, lack of raw materials, or shifts in demand.
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Supplier or Vendor Abandonment:
- When a supplier or vendor stops fulfilling orders or delivering goods, either due to financial instability, disputes, or other operational issues.