According to Burt Flickinger, the product shortage will be as great as it was at the start of the COVID-19 pandemic, as reported on Fox Business. Flickinger made this prediction after Costco warned its customers the week of September 20, 2021 that it was having trouble fulfilling toilet paper orders. But the shortage won’t end with toilet paper.
Expect major product bottlenecks
From chicken shortages to toilet paper and computer chips for cars, bottlenecks affect businesses large and small. And for small retailers, that means they have to pay more for their inventory. Forbes reports that there are still supply chain bottlenecks exacerbated by a lack of shipping container issues and the added cost they are now charging. According to the report, this alone leads to a doubling or tripling of the shipping costs.
The bottlenecks also come when the Christmas shopping season begins. Naveen Jaggi, president of retail advisory service JLL, told Forbes, “The biggest challenge facing US consumers will be that demand will exceed supply.” waiting.”
Add the Delta variant to the mix and the effects of the pandemic will continue to affect consumers and businesses this holiday shopping season. This includes small businesses that are still struggling through this ordeal.
Small business and supply shortages
Small businesses face widespread supply chain problems, according to Oregon’s Umpqua Bank’s 2021 Business Barometer Report. The 1,200 business leaders in the survey said the supply chain is high on their list of concerns going forward.
A whopping 88% of those surveyed said they had had difficulties getting goods in the past 12 months. And the most common supply chain problems they face are getting the goods they need to do business on time, lengthy delays in getting goods, and spikes in goods prices.
The report says that small or large companies are making large strategic adjustments with significant changes in several areas. This includes supply chains, personnel models, corporate culture and vision, stationary operations, and products and services. And for the future, they expect to keep these changes going.
It’s not all bad news, however. 52 percent of small businesses expect the economy to improve and another 53 percent say their revenues will increase. And when conditions caused by the pandemic subside, supply chains will flow to normalize the market.