As many nations begin to open back up after COVID-19 lockdowns, the virus is still impacting our world. While we are so grateful to see cases decline in many parts of the world, other regions are still experiencing unexpected shutdowns. The byproduct of this is continually growing disruptions in the supply chain around the globe.
You’ve likely experienced some of this already—major cost increases in lumber or petrol, delays in shipping, low stock at your local grocery store. For IK Orbis, these supply chain disruptions mean a shortage of raw material and surging prices. We recognize that our current situation is a global experience and not one that impacts our business or customers alone. With that in mind, the goal of this article is to help provide some insight into how these disruptions impact the industry—and potentially your products—and tips to help us all better navigate this season.
What’s Causing Supply Chain Disruptions?
There are a number of factors influencing supply chain disruptions both in China (where our IK Orbis factories are) and across the globe.
One huge factor is unexpected lockdowns in certain regions of China. As new waves of the virus hit different areas, factories are shutting down for weeks at a time in order to protect workers. This results in a shortage of raw material. One example is that our sub-factories that produce stainless steel, ceramics, and glass were recently closed for a period of time. This meant delays in delivery of material from those factories, causing delays in our product development timelines.
Other factors that are causing supply change challenges include a shortage in imported materials such as beech wood and acacia. Overseas suppliers are experiencing many of the challenges we are seeing domestically. They are also struggling with labor shortages which directly impact their ability to produce raw materials.
Finally, the shortage in materials also means surging prices. We at IK Orbis are doing our best to absorb these costs. However, the overarching impact influences everything from shipping to longer production timelines and increased product costs.
Solutions to Better Prepare Your Business
Supply chain disruptions impact every step and person in the production process—all the way to the customer. There are, however, ways to successfully navigate our current challenges.
Plan Ahead
One of the best solutions for any organization is planning ahead. Whether ordering new product designs or customizing existing designs, looking farther ahead means avoiding delays in production and shipping. We recommend adding an extra four weeks to your product timeline. This accommodates for unexpected delays and ensures you get your products on time to meet your launch, customer orders, etc.
Order Earlier
Part of planning ahead is to order earlier. If you normally order two months in advance, add an extra month onto your timeline. For example, if you typically order in late summer for your fall line…place that order now. Also consider placing your subsequent order at the same time.
Place Smaller Orders
One way we love to support our customers is by holding stock in our factory. This allows you to ship smaller orders and always have stock available. We can prepare a larger order that you then draw on as you need (1,000 units this month, 1,000 units next month, etc). Or simply place smaller orders to ensure faster production turnaround and shipping timelines.
Get Started on Product Designs
For those products or collections that are coming down the pipeline, now is the perfect time to get started on design and development. We’ll adjust our process in order to get your design rendered and ready even before it is time to start producing it. We can prepare samples for you to pre-approve, create designs and drawings for packaging, and work out SKUs even before we begin producing the final product. There are many steps in the design and development process. Get started on those now while we wait for supply chain disruptions to resolve.
Book Shipping in Advance
With supply chain disruptions come changes in shipping costs and timelines. We’re noticing shipping costs changing rapidly, directly impacting our clients. If you know you’ll be ordering product in the near future (or even down the road), lock in your freight cost now in order to avoid the rise in fees. We can also help you navigate freight charges! If you are facing higher than normal fees, contact us and we will work within our network to see if we can find you a better shipping rate.
We’re Here to Help With Supply Chain Management!
Need help navigating unexpected changes in the supply chain, timelines, and production? We are here to help you every step of the way. From sourcing new material options to creating a plan of action that allows you to avoid delays, our goal at IK Orbis is to help you bring the highest quality products to market. Contact us to get started with your next order.