You’ve seen it on the news: cargo ships backed up in ports, store shelves emptied out and holiday shoppers unable to fulfill their family members’ wishlists due to shortages. The global supply chain crisis of 2021 is affecting various industries worldwide, from computer chips to chicken tenders. From untimely delays to price increases, this predicament is beginning to affect our everyday lives, especially the livelihoods of various businesses.
Companies Have Had to Look Into Additional Suppliers
What was once a trustworthy relationship between U.S.-based companies and their overseas suppliers has now placed a seed of doubt in many business owners’ minds. Given the current dilemma in the supply chain, it has forced many companies to find additional suppliers in the meantime who can help them stay fully stocked. These products are what bring in the profit for businesses. Without them, companies have been suffering financially. It has undoubtedly put a strain on their relationship with their suppliers and has led them to consider partnerships with home-based suppliers.
Inflation Is Taking Its Toll
Naturally, with the demand being so high for various products around the world, especially in the holiday season, prices have begun to rise. In fact, inflation has taken its biggest 12-month jump since the year 1990, exposing us to surging prices with little time to prepare. Businesses have had to respond by raising their prices, as inflation has made it more expensive for them to stock their stores and deliver to customers. If you’re shocked by higher prices as of late, it can be largely due to manufacturers increasing their costs, making the entire supply chain multiply in expenses.
Businesses Have Made Adjustments
In order to roll with the punches of an uncontrollable situation, businesses have had to make adjustments. While it is not the companies’ fault that they are the victim of shortages, they have had to deal with the bulk of the complaints from customers. Small businesses, especially, have received the bottom of the barrel, as they are not viewed as important enough by some suppliers. This has led many privately-owned restaurants, for example, to be innovative with their products, encouraging guests to bring in refillable cups, forgoing the use of napkins and more. Although not ideal, they have had to learn to adjust in a short amount of time; otherwise, they would risk closing up shop until receiving what they need.
Businesses around the world are hoping for the best, that the supply chain returns to its normal speed shortly. But with the Omicron variant picking up in speed, it is difficult to tell when the supply chain might recover fully.