Weakest link – shortage and disruption of (supply) chains

Scarcity is defined as a shortage.

Have you tried ordering a computer lately?

How about a new custom set of t shirts for your staff or volunteers? We have an extraordinarily complex and highly technical global supply chain that stretches too far. Welcome to the real world rarity.

It’s not just about technology and clothing; we all know that. What about fuel and beef prices? automobile?

Search the world for answers, some are easy and some are just plain implausible, yet very real.

Last summer, when Wuhan, China closed its doors, it’s easy to see the technological disruption – felt months and years later.

Lenovo, Dell, HP, IBM, Apple have a row of power manufacturing facilities in this region.

The jury is still out on when they will be caught. We all hear gossip about inflation and shadow inflation, but what we’re dealing with is scarcity, and never before in my life has so much intersected to get us to where we are today. ‘hui.

Goods from overseas are delayed, and that makes sense, but why American beef? The panic buying throughout the last year, experts say, is one reason. Meat packing plants were also facing slower production simultaneously, so both elements got us to where we are today.

With prices rising, the White House weighed in with a very long report added to the mix. Another reason is that the meat industry is only controlled by a few large conglomerates.

Reading the report, there is a strange element. The fourth paragraph deals with the fact that four companies control 55% to 85% of this industry. It’s such a wide swing. This range would encompass AF from an academic point of view. Maybe it’s a typo.

Please read here and draw your own conclusions.

What about the cars? Why have used vehicles increased by 40%?

Slow demand last year to increase demand this year more (just like with computers), you need to global chip shortage factor, too much.

So there are labor shortages, rising transportation costs, closed factories, rising and falling demand, pandemic panic buying.

What else?

Then there is the fuel.

Along with fuel prices, you also need to factor storms into the equation. Refineries were closed due to summer storms, adding another wrinkle to this situation.

Why still a labor shortage? Are we not supposed to bounce back from last year?

Experts say people are re-evaluating their careers by taking early retirement or collecting government dollars instead of working; it all adds to the list of supply chain problems.

As Tracey’s Sanctuary, president of Tallahassee’s Full Press Apparel, explains:

“We expect things to get worse before they get better. Manufacturers are still trying to catch up on the actual transformation of raw materials into finished products, and then we still see the effects of logistics issues (freight / container shortage, shortage of truck drivers) which have continued to delay the arrival of products to us for decoration. We have been advised by our suppliers that we should not anticipate any improvement, at the earliest, before the second quarter of 2022. “

From a transportation perspective, I asked the President and CEO of the Florida Trucking Association what they thought.

Alix miller shared this on rarity:

“Few understand how incredibly complex and fragile the supply chain is, and the inherent dependence required on all aspects of production and transportation modes. A product purchased by a consumer has been on a truck an average of four times.

“It’s a huge amount of work required to deliver a package to your home. A small broken link in the supply chain spills over into the entire economy.

“Take the example of pallets.

“Pallets have their own production process in the supply chain from start to finish (lumber, processing, construction, delivery, etc.). It also requires a huge amount of labor and transportation.

“We had a shortage of pallets recently. Think about how a product, needed to move and ship goods, affects the supply chain.

“The pallet is not a commodity, but it is a small cog of the machine and can disrupt the entire network.

“Suddenly your grocery store is running out of bottled water due to a shortage of wood.

The lessons of 2020 can show us the way to stability in areas where scarcity causes so much disruption.

Patience and hard work will get us back to where we were at the start of 2020.

Also, when working with small businesses in Florida; I share the words Tracey wrote in her column: “We hope consumers dealing with any small business during these times will show grace and patience if they have to wait a little longer or pay a little.” more. I know we are.

Wise words. Thanks, Tracey, because we’re all in the same boat.

Despite an endless list of obstacles to success, I think we will see American craftsmanship and innovation as we weather the storm faster than experts believe.

___

Blake dowling is CEO of Aegis Business Technologies. He is the author of the book “Professionally Distanced” and the host of the Biz & Tech podcast.

Blake can be reached at [email protected]. You can pick up his book here; it has sold dozens of copies worldwide and is a bestseller in southern Ontario. Enjoy.


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