What the Supply Chain Slow Down Means for Your Holiday Shopping and Shipping

With dozens of cargo ships idling at ports, thousands of flights delayed, and a lack of workers, what can your organisation do to turn around the fourth quarter shopping and shipping season?


It will take more than spreading Christmas cheer by singing loud for all to hear for procurement pros to mitigate the impact of supply chain failures that lead to empty store shelves as well as unfulfilled orders for mission-critical products. But some simple strategies could perhaps save the season.

Unfortunately, the ominous signs of a stressed fourth quarter are everywhere. Importers of toys, hobby products, and other prime gift-giving cargo have warned distributors and retailers to order early. One hobby importer warned retailers to order products from European suppliers early to avoid rising prices. Bluefin, the importer of popular Gundam models and toys from Japan, expects the supply chain disruptions to last through 2022 or later. Some importers have cancelled backorders and asked distributors and dealers to re-order to reflect the new higher pricing and shipping rates.

While gift item shortages grab the headlines, myriad items are affected by the disruption of key components. Critical items may be packed in containers onboard a ship waiting for a berth, or for space on a truck or train, to leave the port.

BOTTLENECKS, SHORTAGES, AND PRICE HIKES – OH MY!

While supply chain snarls account for much of the delay, experts have identified areas of critical shortage that link back to manufacturers and even raw material supplies.

  1. Computer chips 

Any device with a microprocessor is impacted, from the newest iPhone to gaming consoles like the Sony PS5 to scientific instruments. Cryptocurrency miners are snapping up graphics cards to generate digital wealth, making it hard for other computer buyers to get what they need. If your holiday shopping list includes an electronic gadget, order it now. Even then, you may not have much choice in colours, memory or other specs.

The same thing holds true if you’re procuring components for manufacturing, or tools and equipment to help your people do their jobs – don’t wait to order. And be prepared to pay more for purchase and shipping. Otherwise, you need to revise your strategy and find alternatives to meet your organisation’s priorities.

  1. Plastics 

The supply of resins used to make plastics is under stress, driving up prices for everything from car parts to artificial heart valves. Production in Texas and Louisiana was shut down for weeks after a severe winter storm earlier this year, severely limiting the global supply of polyethylene, PVC, nylon and epoxy. The pandemic-driven surge in demand for personal protective equipment, plastic delivery bags, and plastic eating utensils hit when production was already stressed. Resins are produced from the petroleum refining process, so any disruptions like hurricanes in the Gulf of Mexico reverberate across the plastic supply chain. Experts recommend that companies allow plastics manufacturers to spec multiple types of resins as alternatives, to sidestep shortages of any single kind of material.

  1. Paper/fiber products

Demand for paper and other forest products hits retailers hard during the holiday season. Paper for catalogs and other marketing materials is in short supply, and printers are turning away clients. During the pandemic, even online brands like Amazon and Warby Parker saw the value of printed catalogs to reach consumers fatigued, due to online shopping. Some mills have switched to producing cardboard to keep up with the demand for shipping cartons and packing material for e-commerce deliveries. There’s also a resurgence of toilet paper and paper towel hoarding from the beginning of the pandemic. Overall, U.S. paper mill capacity is down by about 20% compared to 2019.

How to keep your holiday merry and bright

  1. Order early

Whether you’re buying presents for family or restocking your warehouse inventory, place your order as soon as possible. Don’t wait for promoted shopping days like Black Friday. That’s when everyone else will be buying. If you order early, there’s a better chance your products will arrive when you want them.

  1. Be realistic

Be flexible if possible. If you insist on a particular colour or specific feature, you may be disappointed. Look at popular holiday staples – they may be easier to come by than a highly specific style or a unique boutique product. Classic jumpers are always in style, so while it might not be the most imaginative gift, there’s a better chance of it arriving on time. The same rule applies with your procurement orders – If possible, wait until after the fourth quarter surge to order less popular or customised items.

  1. Check shipping deadlines

If possible, check the estimated shipping times before you click “Buy Now.” Keep in mind, these are subject to change as problems percolate across the supply chain. Of course, the buyers waiting on containers stuck off the coast of California did their due diligence when they ordered, only to be caught in the traffic jam.

  1. Shop locally when possible

Purchase goods that are closer to you to avoid delays. Even if the purchase cost is higher, transportation costs could be less, and there’s a lower chance of delays. That’s a good sentiment to have, whether you’re strolling the streets of your town to the local toy or bookstore, or ordering from domestic suppliers.

For holiday shoppers and procurement foes alike, the weather ahead looks frightful, and there’s no delightful fire in sight to take the edge off. Shortages and delays will be a fact of life for the near future, and costs will likely continue to rise as inflation seeps into the economy. Being flexible in your planning and expectations could help blunt the impact of these shortages on your organisation and your holiday outlook.

How have the supply chain shortages and shipping delays impacted your organisation? Let us know in the comments below!