From the Better Business Bureau of Central Virginia:
Grocery aisles have gaping empty sections, and shoppers can never predict what’s going to be unavailable. New car dealerships struggle to fill their empty lots. People building homes report long waits for critical materials like windows and doors. Almost every industry has shortages and delays that all boil down to supply chain issues.
Consumers and business owners are frustrated and confused. COVID-19 infection rates are declining, and restrictions have eased in most parts of America. Shouldn’t things be getting better by now?
BBB provides the following information on why supply chain disruption is still ongoing and tips on how businesses and consumers can combat it.
Disruption causes
Everything from sandwich meat to household appliances seems to be in short supply, but how did it get this way? The disruption is so hard to fix because many of the factors that caused it still exist. Plus, once the global machine shuts down, it takes a while to get things started again, and all the pieces have to work together. These causes set off a chain of events.
- Governments worldwide responded to the Covid-19 pandemic with shutdowns.
- Organizations halted production and laid off employees.
- Component shortages began affecting everything from automobile production to the manufacture of medical devices.
- Fewer goods were produced.
- Demand surged as people stuck at home sought merchandise. The goods they wanted changed as lifestyles shifted. Funds previously allocated for things like haircuts, gym memberships and live entertainment now went toward products.
- Government stimulus programs encouraged spending.
- Protective gear needs spiked, and shipping and delivery of related goods took priority.
- Shipping containers started to pile up in parts of the world where they weren’t needed and weren’t available where they were. Shipping costs skyrocketed and ports clogged.
- Businesses experienced labor shortages. Trucking companies, warehouses and ports remained understaffed, further complicating distribution.
- Because of staffing problems, imports were slow to get unloaded. Containers weren’t emptied and sent back for refilling, and loaded container ships sat idle outside ports.
- Consumers and businesses started buying extra whenever they could find it, creating additional supply chain issues.
Around the globe, production continues to be hampered by labor and materials shortages, so manufacturing happens in spurts and sputters. When one link in the supply chain gets broken, it affects everything that comes after.
How long will supply chain issues last?
Some economists say things should ease up later in 2022, while others expect problems to continue into next year. There still aren’t enough workers to unload goods piled up at ports or enough truckers to distribute products across the United States. While COVID-19 restrictions have recently eased, it will take a while to sort out a complicated situation that was almost two years in the making.
Best practices for businesses
Costs are up, employees are hard to find and there’s no end in sight.
- Plan for more disruption – Nobody seems to have a working crystal ball right now, but you can count on more bottlenecks and shortages in the near future. Have more than one plan for addressing the next round of manufacturing and supplier delays.
- Streamline what you offer – If you’re a restaurant, pare down your menu to include items that are easier to find. If you’re a retailer, order more from the manufacturers that have been coming through for you all along.
- Create realistic expectations – Don’t overpromise. Communicate with the public what you offer and how much is available.
- Offer incentives – If you run out of an item for which there’s high demand, consider offering a coupon or incentive that brings people back once you stock up again.
- Invest in technology – Automate everything you can to free up overworked staff members for other things.
- Improve your local network – If you can find business resources close to home, you skip import complications.
Consumers know there are problems, and while it’s normal to wish we could go back to the old normal, most people are understanding. Good communication goes a long way in times of crisis.
Supply chain disruption tips for consumers
What can you do when your car breaks down and the local mechanic can’t get the part you need for at least six weeks? How can you respond when it’s your child’s birthday and the gift he or she has been begging for is nowhere to be found? What do you do when half the items on your grocery list are out of stock? Here are a few ideas.
- Shop around – Sometimes grocery chains and big box stores have empty shelves, but local mom and pop stores have found a way to procure merchandise.
- Conserve – Cut back on what you use, so you don’t have to stock up as often.
- Maintain – Appliances and automobiles are getting more expensive, and they can be hard to find. Invest in maintaining what you have so hopefully you won’t need to buy a replacement until today’s supply chain issues are in your rearview mirror.
- Try new things – If you can’t find what’s on your list, infuse your search with a sense of adventure. You’ll discover flavors, brands and methods you might have otherwise missed.
- Express gratitude – Thank the person stocking grocery shelves for his or her hard work. Buy that trucker at the gas station a cup of coffee. Show appreciation when you get seated at a restaurant, even if you had to wait longer than usual.
BBB tools that can help
If you’re a consumer, BBB can help you make informed buying decisions. Search BBB business profiles, file a complaint when businesses don’t deliver on their promises, search ongoing scams and more using BBB consumer resources and our Consumer HQ.
If you run a business, we can help you with everything from marketing to sales to building solid customer relationships. Apply for BBB Accreditation and start building trust through our business resources page and our Business content HQ.
About the BBB serving Central Virginia:
BBB serving Central Virginia serves Richmond, the Tri-Cities, Charlottesville, and Fredericksburg, as well as 42 surrounding counties from Fauquier to Mecklenburg and Northumberland to Amherst. The nonprofit organization was established in 1954 to advance responsible, honest, and ethical business practices and to promote customer confidence through self-regulation of business. Core services of BBB include business profiles, dispute resolution, truth-in advertising, scam warnings, consumer and business education, and charity review.
