After the year we all had in 2021, with the global supply chain severely impacted by the effects of the pandemic, you wouldn’t be alone in thinking that 2022 was going to be better. In many ways, it has gotten better – but problems still persist in every industry. From delayed shipments to factories unable to keep up with the backlog of demand for products, it’s still going to be a while before we can experience a “normal” supply chain (although whether we can truly define it as being “normal” is another blog post altogether).
Back in January of this year, Advertising Specialty Institute (ASI) released a report that said supply chain issues would persist well into 2022, and maybe even in to 2023. With that in mind, we thought it would be a good time to check in with Elizabeth Wimbush, VP of Supply Chain and Sustainability here at Genumark and Rightsleeve, to get her thoughts on the matter – and what, if anything, has changed since we last chatted with her about this issue back in 2021 (you can read that post right here).
Let’s dive right in!
Since we last chatted about the supply chain, the world has slowly started to get back to a sense of normalcy. Can the same be said for the supply chain?
Slowly but surely, things are starting to right themselves in the global supply chain – it’s like a massive ship that can’t make any sudden turns. You set a new course, and though it can be hard to see it happening in real time it’s slowly making the changes in direction that are needed to get there.
There are still setbacks and hiccups. Some we can anticipate, like congestion at ports that suddenly see an influx of traffic or seasonal spikes in shipping around the holidays. Some we can’t, like natural disasters such as floods and wildfires, which lessen or fully cut-off access to areas and the movement of goods through them. Compared to where we were a year and a half ago though – we’re on the mend!
What parts of the supply chain are still struggling right now?
Inventory backlogs are the primary pain point right now, not just in the branded merch industry but across the board. Ask anyone who’s tried to buy a new vehicle in the past year and they’ll have an earful for you. Any product that is made up of a multitude of parts, big or small, can get held up at any point with one missing component. Those cool wireless earbuds with your logo have lots of little bits and pieces, and even wearables have been impacted with some ink shortages that are required for screen printing.
Seemingly unrelated shortages can have far reaching consequences – remember that once-in-a-lifetime deep freeze in Texas in early 2021? That caused a gap in the availability of certain types of plastics, because of the petrochemical plants there didn’t have a chance to properly shut down equipment before they froze. It coincided with production ramping up for products that have plastic components, which then puts a halt on manufacturing lines and creates a backlog and pent up demand.
What can clients do to help mitigate these issues?
Ordering early is always a fantastic idea! Production times on different products vary but it’s advantageous to have a buffer built in for any firm deadlines. The best thing clients can do to mitigate supply chain issues right now is to work with our expert sales team to guide them on their buying decisions – sometimes that means working with local vendors and sometimes it means leaning on our key partner vendors and their deep inventory. They are truly the best in the industry and work very hard to stay up to date and educated so that they can be relied on for their knowledge and experience!
Do you think the strains on the supply chain have permanently altered the way industries like ours operate?
I suspect there will be ripple effects for some time yet, but I don’t think it’s all bad. I’m very excited about how it has helped encourage a more diversified supply chain, which strengthens it. It has also reinforced our resolve to provide the most meaningful and impactful merch we can from a sustainability angle, which positively impacts everyone who benefits from a healthier planet!
What can clients expect from Genumark as we work through these issues?
Open, honest communication and clear expectations are the name of the game. We can’t control port congestion or a labour shortage halfway around the world that leads to a shortage in your favourite tshirt style, but we can always ensure you are able to make informed buying decisions and are kept updated on available alternatives. We want our clients to feel comfortable leveraging our years of expertise so they can make the best buying decisions!
