Ways to outsmart supply chain slowdowns this holiday season
Release the hounds! This weekend marks the start of the great holiday hunt, as shoppers dash off in pursuit of those perfect gifts, only to be outfoxed by kinks in the supplychain.
“COVID disruptions, labor shortages, and pentup demand from consumers, who have been stuck home and are now hankering to spend, have conspired,” said Robert Handfield, a professor of operations and supply chain management at North Carolina State University. “Holiday shoppers are feeling the squeeze of a global supply chain under duress.”
Ships carrying supplies, parts and products are stuck in port. Suppliers and makers of parts and products need materials as well as workers, which are also in short supply. Both suppliers and manufacturers need trucks. And trucks need drivers. So shelves and stockrooms lie empty as the holidays loom.
Much of the problem begins at the Port of Los Angeles, Handfield said, which is the single largest point of entry for goods in the country. “The L.A. port’s volume has grown 30% to 40% over last year at this time. The ships are so backed up, they can’t unload their cargo, which is mostly coming from China.”
The problem is so bad that Walmart, foreseeing that holiday merchandise wouldn’t arrive in time, has asked some ships to turn around and go back, he added.
This does not bode well for someone who has his heart set on getting a PlayStation 5.
“What’s a shopper to do?” I ask.
Besides the obvious “shop and ship early,” avoid the mentality that you have to get that certain someone a certain something. Be open to other, perhaps more thoughtful, options. “Finding a local, handmade present is better than buying the latest whiz-bang gadget mass produced in a Chinese factory,” Handfield said.
Here are ways experts say we can beat supplychain woes.
BUY LOCAL >> It supports the local economy, avoids shipping delays and ensures you have your gifts in hand.
BUY AMERICAN >> Companies that make and source their products domestically have far better control of their supply chain than those that rely on importing. For instance, Red Land Cotton, a grower and maker of cotton products, doesn’t deal with any port-related slowdowns, said Anna Brakefield, who co-owns the business with her father. The company grows the cotton on the family’s Alabama farm, then makes products in nearby Georgia and South Carolina.
BUY SECONDHAND >> As more Americans embrace sustainability and a reuse economy, more feel comfortable buying secondhand gifts online from resellers, said Amanda Morse, co-owner of List Perfectly, an e-commerce tool. According to a recent survey by Zogby Analytics, 38% of U.S. adults planned to buy secondhand items as gifts. One caveat: “When buying secondhand, pay close attention to the seller’s shipping policies,” said
Morse, “or you may end up buying from someone on vacation.”
BUY ONLINE AND PICK UP IN STORE >> For that last-minute shopper who needs that gift quick, ordering online from a large retailer, then picking the item up at the nearest store can save precious shipping days.
Avoid anything on back order or coming from another country. “Just forget it,” said Handfield. “Today the issue is not so much getting from the distribution center to your home; the bottleneck is the port. If it’s in the United States and in stock, you’re good. But if it’s on back order, and the stated lead time is three to six weeks, watch out.”
Avoid anything with a chip. “Semiconductor chips are a huge problem, and the back orders will continue all year,” Handfield said. He also advises avoiding electronics in general.
PAY FOR PREMIUM SHIPPING >> Just do it.
SHIP DIRECT >> When ordering gifts for distant friends and relatives, ship direct and pay a little extra for gift wrapping if the seller offers that.
GIVE SUBSCRIPTIONS >> Consider giving a consumable gift that keeps giving. Blue Apron and Hello Fresh both offer gourmet meal kits ($10 per serving and up) and Master Class offers online courses from A-list talent for $180 a year. These gifts won’t clutter closets and won’t be on back order.