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November 11, 2021
By: Mark Lusky
Principal, Mark Lusky Communications
Product manufacturers facing all types of supply chain challenges can find ways to be heroes to their customers by planning ahead where possible and being nimble. Bottom line, maintain control of everything you can and pivot creatively to do the best job possible where you can’t. Short of not being able to source ingredients to manufacture products, many materials – from containers to the custom labels adorning them – can be found in a way that fulfills customer orders in a reasonable and timely fashion. A USA Today article addresses the vulnerability of the supply chain, and consequent ability of product manufacturers to deliver full orders on time: “A customs dispute at the US-Canada border involving shippers and US Customs and Border Protection is preventing the transportation of fish used in fish sticks and sandwiches. Can’t find what you need at the store again? You’re not alone. As the world reaches the two-year mark of the Covid-19 pandemic, more items are becoming scarce because of a supply chain shortage across the globe. Supply chain concerns are a result of ‘record-level congestion at the Port of Los Angeles/Long Beach that has spread to the East Coast, the widespread power outages across China, shortages of truck drivers and service workers, and Covid-19-fueled infections and restrictions,’ Tinglong Dai, a business professor at Johns Hopkins University, told USA Today in an email. Shipping prices have skyrocketed, and demand for items has outpaced supplies.” Here are tips to help weather the supply chain storm: 1. Query suppliers about their inventory and warehousing strategies and capacities. Labels are a great case in point. Talk to the printer about what they’re doing to ensure having what you need when you need it. This can help hedge bets for manufacturers needing to stock up ahead of time. Of course, to ensure satisfaction in this arena, make sure the printer can back up their claims – and isn’t just spewing sales talk to get your business. The right time to confirm availability of label materials is now, not when a deadline is approaching and everyone is scrambling to access those materials at the same time. 2. Order labels and packaging well ahead of needed deadlines. Regardless of whether or not the supplier can confidently assure availability of materials, there are still supply chain issues out of their direct control – such as third-party shipping problems and escalating manufacturer demand for materials. To help ensure not getting caught in a shipping/regulatory snafu or discovering that burgeoning product label demand has exhausted a seemingly adequate supply of materials, think and order ahead. This may mean having to inventory more labels than normally needed, but it’s better safe than sorry. Of course, product manufacturers also may experience more than expected increases in consumer demand for their products. Many are currently experiencing the boomerang effect of “pent-up pandemic” buying cycles, which may intensify as this year’s major buying holidays approach. That’s on top of diminished supplies as a result of the pandemic and its consequences. This is reinforced by Transportation Secretary Pete Buttigieg on CNN: “…supply chain issues facing the US will continue into 2022… ‘Look, part of what’s happening isn’t just the supply side, it’s the demand side. Demand is off the charts,’ he added.” 3. Educate customers to think and order ahead, as well. For example, holiday presents will require that customers be made aware of the need to order as soon as possible to avoid inconvenient delays. As part of this, educate them about potential shipping delays and delivery problems being caused by a variety of factors, including a shortage of shipping employees, inadequately trained employees, and inexperienced personnel unable to be as productive as more seasoned counterparts. 4. Think ahead creatively about container alternatives. Manufacturers should research pivoting to different types of containers that may be much more readily available. For example, a liquor manufacturer accustomed to a particular type and style of bottle may have to switch to something more available. In some cases, buying local – and avoiding potentially major shipping problems – may merit consideration. In other cases, this may present an opportunity to pivot quickly into a new branding presentation with a different type of container. We are living in unprecedented times. Traditional rules about supply and demand are out the window. Savvy manufacturers will see current challenges as a way to grow through the crisis versus making excuses about it. Mark Lusky is a marketing communications professional who has worked with Lightning Labels, an all-digital custom label printer in Denver, CO, USA, since 2008. Find Lightning Labels on Facebook for special offers and label printing news.
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