Supply-chain disruptions will bedevil consumers during the holiday season — not just this year but in 2022.
Those are among the sobering conclusions in a report on how component shortages and transportation choke points will impact retailers, according to research from Coupa Sofware Inc.
Retailers expect revenue losses between 5% and 20% from the past 18 months because of supply-chain issues, translating into billions of dollars in lost sales, based on a survey of more than 600 supply-chain leaders at retailers in the U.S., U.K., France and Germany conducted in October by Sapio Research on behalf of Coupa.
“It’s absolutely the worst situation I’ve seen in 23 years covering the field,” Madhav Durbha, vice president of supply-chain strategy at Coupa, told MarketWatch. “The challenge is, how do you get products from ports to their final destination?”
And there is no relief in sight: Nine of 10 retailers anticipate revenue will continue to be impacted by supply-chain issues for at least the next six months.
Fueling long delays and shortages are issues related to shipping containers, followed by long supply chains and truck-driver shortages. In Europe, the impact of Brexit was also a significant factor.
“To help overcome these omnipresent challenges, retailers are finding value in supply-chain design and planning technology,” Durbha said. “They can stress-test supply chains in real time, tear down silos and eliminate blind spots across their businesses to outsmart disruptions.”
Major retailers Costco Wholesale Corp.
and others are chartering their own ships and sending them to less-congested ports in Florida and Alabama.
Some 71% of retailers that usually offer Black Friday deals did not offer as many this year, and 67% are encouraging customers to shop early this year.