From shipping container ships getting stuck in canals to countrywide lockdowns to workforce shortages, the list of supply chain problems is seemingly never ending. As we make way to the end of the first quarter of 2022, it’s apparent that the shortages of the past two years could continue to be a lingering problem. There are many reasons for these shortages; the question is, how can you prepare your business for the future?

Bull in the Toilet Paper Shop

In early 2020 as lockdowns swept the world, consumers started hoarding products such as toilet paper, pasta, and eggs. This led to suppliers trying to quickly keep up with demand, which caused a ripple effect up the supply chain, referred to as the bullwhip effect.

It’s reported that 9 out of 10 food and beverage businesses have been experiencing supply delays. In addition to the supply chain challenges, 91% of operators have said their food costs have increased. With the rise of food expenses and the continued demand for takeout, profit margins are lower than pre-pandemic. There is a delicate balance between meeting your current consumer demand and managing inventory.

To combat the rising costs and availability of imported foods, consider simplifying your menu offerings. This can help you control the variety of ingredients you need on hand. As an alternative, incorporate more locally sourced products into your menu. Buying locally allows you to work directly with farmers, meaning a shorter supply chain process and more money is going back into your community.

Do Not Pass Go

When the Ever Given spent six days hanging out in the Suez Canal, this froze nearly $10 billion in trade a day. Not only those shipping containers aboard that ship were delayed, but so were all of the containers on the other ships unable able to pass through the canal.

About 1.9 billion tons of products are transported by sea every year. These products are subject to border closures and lockdowns, containers left in wrong locations, or vessels simply unable to dock where they needed to. Labor shortages linger, and open ports are being overwhelmed with congestion. The average shipping container now spends about 20% longer in transit than before the pandemic.

While there have been many technological advances, production and delivery still heavily rely on actual humans. The worker shortage has hit every industry from healthcare to hospitality to manufacturing. If you’re facing staffing challenges, consider what processes you could automate to help relieve the staff you do have.

Where in the World is Your Equipment

Aside from a cargo ship carrying 4,000 cars catching fire in the middle of the Atlantic Ocean, car manufacturers were already suffering from a chip shortage. Every manufacturing industry is. The chip shortage started with the surge in demand for personal computers and electronics when consumers were hunkered at home working and attending virtual classes. As the need for new cars, washing machines, etc., had slowed, these computer chips were redirected to meet consumer demand.

When consumers started venturing back into the world a few months later, manufacturers had a hard time getting enough chips to keep their production lines moving. From smartphones to cars to commercial cooking appliances, all these industries are being affected by the shortage of raw materials to produce computer chips and even stainless steel.

Be Proactive, Not Reactive

You might be considering delaying equipment repairs or upgrades right now, but this too can have significant drawbacks. Unreliable equipment can cause food quality problems and downtime. Delaying upgrades could mean you could be waiting as long as six months for equipment to be delivered. Ovention Ovens are all designed and manufactured in the USA, with a current lead time of 7 weeks. Our trusted team of experts is ready to help your operation!