During the COVID-19 pandemic supply chain problems became commonplace with a nationwide shortage of toilet paper and cleaning supplies. Two years later, consumers are still faced with bare store shelves due to reputed supply chain problems. Baby formula, tampons, automobile parts, and computer chips are all current items that have become hard to obtain. The shortages have driven prices to record highs.
Challenges of the Supply Chain
Many experts forecast that challenges in the supply chain will persist due to the Ukraine War and other issues occurring around the world. The reality is that shortages occur if the demand exceeds the current supply. In recent years, the demand has become higher than expected and the supply has plummeted. The prices are reaching all-time highs.
Planning Ahead for Stocked Shelves
At this point, suppliers need to start planning. With the holidays looming, turkey farmers should start considering the demand for turkeys and Halloween will fuel a pumpkin demand. Without a doubt, predictable demand is usually easier to forecast and meet.
Regardless of the best-laid plans, supply availability disruptions can occur. Manufacturing plants can close, product recalls may occur, and staffing problems can all cause supply chain disruptions. Not to mention constant transportation logistic issues and ongoing shipping delays.
Complexities of the Supply Chain
Most consumers are not aware of the complexities of the supply chain, and they don’t really grasp the last mile that is touted by e-commerce sites. In the near future, supply chain uncertainty will persist, and consumer confidence will remain shaky. When consumers are concerned, they often over buy which depletes inventory and causes even more problems and shortages. The entire process becomes like a self-fulfilling prophecy.
In many cases, certain products are in short supply such as the baby formula shortage that recently occurred. However, consumers do see rotating waves of products and empty shelves. In most situations, these shortages become quickly resolved.
Supply chain problems are genuine and not fabricated. However, they occur for a wide array of reasons and the supply chain is not in dire straits. Things ultimately start to work out with each item and balance occurs. Sadly, supply chain problems are being twisted for use in political advertisements and other news media blasts which distort the truth and mislead consumers spurring panic buying.
To learn more about the current supply chain, contact Sobel Network Shipping Company.
