How The Global Supply Chain Crisis Affects You And What You Can Do To Prepare
With the COVID-19 situation steadily improving, demand is going back up again. As the resulting reopenings take place, the industry has found itself in the middle of a global supply chain crisis. This problem is caused by a myriad of factors including the shortage of raw materials and shipping issues due to temporary port closures and factories working at reduced capacity.
This supply chain crisis has disrupted the mobility and availability of most foodservice items--from refrigerators and ovens to flatware. It created shipping and fulfillment struggles for equipment providers with the pent-up demand now in the equation.
This is why it is all the more vital to plan ahead to make sure you are able to get your hands on everything you need. Here are some of the things you should be ready for:
Longer lead times
Lead times have become highly unpredictable, so expect some delays in the delivery of your orders. Some could take as long as six months. In addition, details about lead times are not readily available in most cases.
Every single day could bring a new set of problems and some of them won’t even be visible until it’s too late. We will do our best to provide you with all the information we have to keep you in the loop.
What you can do: If you anticipate using a piece of equipment in the immediate future, it is recommended that you order it as soon as possible. For supplies, consider ordering larger bulks that can get you through several months. Verify if you have the ability to store a higher volume than usual.
Some products are in short supply, if not out of stock. Save yourself from future headaches by thinking about what you will need months from now. Create a list of all these items so you won’t forget to order anything.
What you can do: Analyze the flexibility of your operation and find segments in which adjustments can be made to fit what’s currently available.
Be aware that prices of foodservice equipment could change as the cost of raw materials and parts increases due to the higher demand.
What you can do: Keep your finger on the pulse about any price changes to accommodate them accordingly in your budget.
Until the global supply chain stabilizes, it will take a whole lot of planning and reconfiguring to stay well-equipped and fully stocked.