Supply chain problems — address the exceptional situation in the best possible way
In an article from November 2, 2021, Michael Lichtinger describes Consumer goods and retail expert, the challenges that global supply chains are currently facing. These problems are compounded by pandemic-related production outages in Asia and a shortage of raw materials. The result is significant supply bottlenecks and logistics chaos, which affects the retail sector particularly during the important Christmas quarter.
Nike, Puma and Adidas are suffering production losses due to the pandemic. The Suez Canal Blockade was followed by bottlenecks in container shipping, with the Conora outbreak in Ningbo-Zhoushan, China causing further delays. As a result, predictability and delivery deadlines are a major challenge. Container prices have risen dramatically, leading to economic decisions that do not justify shipping certain goods.
Many companies are now trying to increase efficiency by buying their own ships or transporting their goods on alternative routes. Air freight remains a costly option and rail connections are congested. Companies are also looking at “nearshoring” and dual sourcing strategies to distribute risks and draw on regional production capacities.
When it comes to pricing and customer loyalty, retailers are faced with the challenge of managing rising costs while ensuring customer satisfaction. It is discussed how customers can be compensated for missing products, for example through discounts or special events.
A holistic strategy that includes marketing, sales, and other areas is required to secure lasting customer loyalty. Despite efforts, some goods will not arrive in time for the festival. However, experts expect the transport situation to normalize next year.
The full article on Beschaffung-aktuell can be found via the following link: