The end of Shanghai’s two-month COVID-19 lockdown is hoped to get the world’s busiest port back to business quickly, but supply challenges are likely to persist for a while.
With the reopening of Shanghai, supply chain pressures could begin to ease, but lingering pandemic-related challenges and labor challenges on the horizon for West Coast ports suggest that supply chain hurdles are not behind us yet.
From elevated container freight rates and delivery logjams, the lack of product reaching the U.S. from Shanghai was only part of the problem.
As a May 10 Fitch Ratings article noted, “Even before the latest lockdown in China, the time taken to transport freight from Asia to the U.S. West Coast was twice as long as it was at the start of the pandemic, while shipping rates are six times higher than they were in early 2020.”
While disruptions may be unavoidable, working with an experienced partner can help to alleviate challenges, mitigate ongoing shortages of product and ensure that you’ve got the things you can control well-managed.
Creative Solutions to Supply Chain Challenges
While there’s no magic wand to make supply chain difficulties disappear, working with an experienced partner can help you navigate the uncertainty. With overseas product unable to reach the U.S. on schedule, a little creativity can pay off.
Challenging circumstances may provide organizations with opportunity for diversification or expansion of services or products. With existing supply chains slowed, you might consider ways to monetize inventory that is otherwise unproductive. Companies will want to focus on staying ahead of supply concerns, maintaining brand relevancy with retailers and consumers, and creating backup plans for ongoing supply chain bottlenecks.
Switching production to U.S.-based facilities can streamline the retail path to purchase, avoiding the headache of overseas transportation backlogs. If changing suppliers is not an option, staying ahead of supply chain pitfalls is crucial.
Resolve Supply Chain Issues – Before They Become Problems
Working with a partner with the resources and experience in packaging, displays, fulfillment and logistics can be a hedge against current supply chain obstacles and an opportunity to develop strategies for mitigating potential difficulties to come. With the right team on your side, you can take steps to position your business to stay profitable and productive.
At TPH Global Solutions®, we work with clients across industries on:
- Retail Display & Packaging Creation
- Retailer Pitch & Sales Support
- Domestic & Overseas Production
- Project Management & Supply Chains
- Logistics & Transportation Support
Contact us to learn more about how we can help you navigate supply chain obstacles and get your product to retail.