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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.
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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.
Read: America’s new export problem: 12.1 million shipping containers left biggest U.S. ports empty
“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.
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Walmart Inc.
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Target Corp.
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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.
