HOW INCREASED DEMAND IS DISRUPTING THE SUPPLY CHAIN THIS HOLIDAY

SUPPLY CHAIN HOLIDAY TRENDS 2021

The holiday season is here once more! With retailers encouraging consumers to get a jump start on their holiday shopping, material handling companies must be ready to follow suit and provide the supply chain support that these retailers need.

 

3 Material Handling Trends for the Holiday Season



While in years past, October seemed early to be Christmas shopping, it was the suggested norm for 2021. Unfortunately, there are already hints of panic and fear with the expectation of stock shortages for virtually all products. As we look ahead to the holiday season, these are three key trends we can expect.



1. The Push Has Already Begun 



Have you been hearing Christmas bells? If you’ve seen a recent advertisement, then the answer is likely yes! 

Last year, the panic of COVID-19 led companies to begin marketing their holiday specials in October. This year, research shows that most businesses started their holiday marketing campaigns in early September. Retailers hope that customers ordering presents early will mitigate the chances of long delays for deliveries in the run-up to Christmas. While this idea is good in theory, it neglects one fact: the material handling sector is still recovering from the impact COVID-19 is having on the industry, and as a result, the economy. 

 

2. Increases In Expenses 



In addition to heightened demand, material handling companies are having to work more quickly than ever. Due to high levels of disruption in the sector, businesses will also have to handle issues with rising prices. With more pressure to deliver products within a shorter window, retailers need to invest in the quality of their products and the safety and productivity of their material handling employees working on the supply chain.


3. Pressure on the Supply Chain 



While encouraging an early start may have curved some demand, pressures on the supply chain are expected to be just as severe as 20201,2,3. Major companies have already noted concerns about supply chain costs and potential bottlenecks that could leave businesses short on products in high demand. With longer leader times, companies that haven’t adapted run the risk of products being stuck at other points along the supply line.

 


HAWKER®: Products and Services in an Unpredictable Time



Ultimately the 2021 holiday season could be difficult for all businesses. But, at HAWKER®, we are committed to ensuring that supply chains remain flexible and reliable. If you would like to learn more about our power solutionscontact us today. 




Citations:


1. Nader Mikhail, “Dealing With Large-Scale Supply Chain Disruptions in 2021,” Supply Chain 24|7,  https://www.supplychain247.com/article/dealing_with_large_scale_supply_chain_disruptions

2. Holly Ellyat, “Supply chain chaos is already hitting global growth. And it’s about to get worse,” CNBC, https://www.cnbc.com/2021/10/18/supply-chain-chaos-is-hitting-global-growth-and-could-get-worse.html 

3. Garth Friesen, “No End In Sight For The COVID-Led Global Supply Chain Disruption,” Forbes,
https://www.forbes.com/sites/garthfriesen/2021/09/03/no-end-in-sight-for-the-covid-led-global-supply-chain-disruption/