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The Supply Chain Domino Effect

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Let’s talk quickly about supply chain issues and workarounds. 

If you’re not aware, COVID put a spanner in the cogs of what was previously a reasonably well-oiled supply chain machine. 

The initial outbreak of this world-changing virus in China saw setbacks in manufacturing and delivery times. 

When the pandemic hit the rest of the world, excess funds went towards online shopping rather than dining out and travelling. This slowed things down even further. 

Worker slowdowns and absences added to processing times at shipyards, while the pressure on delivery drivers blew timelines out further. 

And just when the effects of the pandemic began to subside in the Western world, China experienced a new round of lockdowns in 2022. 

This is not even factoring turmoil in Eastern Europe into the equation. 

So things are unbalanced… but what do we do about it? 

Being realistic about timeframes and expectations is the first step. 

Next, it’s about transitioning away from a ‘just-in-time inventory’ mentality to a more forward-thinking approach. For some businesses, this means ordering in bulk and investing in storage, rather than expecting to be able to get what they want from China with only a few weeks’ lead time. 

If you make purchases in lower quantities, it may also be worth partnering with other businesses. This will allow you to fill shipping crates/trucks and get better value for money. 

There’s no simple solution but creative thinking and innovative problem solving will help while we wait for this situation to play itself out. 

Don’t forget that we can connect you with the providers who have the best availability, communication and turnaround times within Australia. 

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