Supply Chain Disruptions – Discussion

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by 08u3a1o

I recently came across this post highlighting the negative impact that COVID has caused on supply chain disruptions. Here are some of the quotes from the post that I find unreal:

  • Nike “Prior to the pandemic, it would have taken approximately 40 days to move product from Asia to North America. Transit times have been increasing due to container shortages, port congestion, rail congestion and labor shortages, impacting the entire industry. And during Q1, these lead times worsened further to now sit at 80 days, roughly 2x normal….”
  • JOAN “The most critical shorter-term issue we are currently facing is the overall highly stressed supply chain… For perspective, we are currently required to pay as much as 10x our historic average container rate to secure overseas shipments.”
  • General Mills “We’re seeing a widespread impact, everything from raw material vendors, challenges there, internal manufacturing, co-packer manufacturing and our distribution network. And it’s almost whack-a-mole right now. So we have literally hundreds of disruptions in our supply chains, and it really changes on a daily and weekly basis.”
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It’s incredible that even a year into the pandemic, we’re still seeing such a big impact on the supply chain and there’s no end in sight. A lot of consumer goods companies will likely miss revenue estimates in Q4 if they can’t solve these issues.

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I am looking forward to earning reports of companies suffering because of this.

Here’s the link to the whole post if you’d like to read it: MacroTalk October 6: Supply Chain Disruptions.

What are your thoughts, how long do you think it will take to solve the disruptions? I assume stocks will raise then (or hope so).

 

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