Supply Chain Disruption Forcing San Diego Businesses to Make Tough Decision this Holiday Season
Local Crisis Management Expert Believes Distributions Challenges Are an Opportunity, Not a Crisis.
The Halloween decorations have been put away and we are now entering the holiday shopping season. Sticker shock will be this year’s theme, if you can find what your looking for that is.
SAN DIEGO—The global supply chain crisis, which includes thousands of unloaded containers with merchandise lingering on ships in major US ports, coupled with skyrocketing gasoline prices, a worker shortage, and a huge increase in consumer demand, is forcing local companies to make some tough decisions heading into the competitive holiday season.
According to Crisis Management and Business Continuity Expert, Keith Erwood, Business Preparedness Expert of ERWOOD GROUP, companies must decide three important questions: will they pay higher prices upfront to receive overseas goods, pass the increased costs onto their customers, or retreat from overseas markets, all together.
Keith Erwood: “Our data and research indicate, things will get worse before they get better. However, the supply chain disruption should be viewed as an opportunity, not a crisis, for our San Diego business owners. There are steps companies can make to ensure resiliency and identify key strategies you can take to build a stronger supply chain.’
To help local businesses survive this holiday season, Crisis Management Expert, Keith Erwood, Business Preparedness Expert of ERWOOD GROUP has outlined strategic steps to handle the supply chain disruption:
Diversity of Supply Base
To help untangle the global supply chain mess, businesses need to move away from depending on a single supplier overseas, like China or Vietnam and find local suppliers where possible to fill critical components or materials. This is because local suppliers can deliver products much quicker. It is also easier for a supplier to coordinate a shipment across the neighborhood than around the world.
Forecast Demand
Companies need to focus on delivering quality best-selling products to their consumer-base, instead of trying to keep shelves packed with non-essential slow-moving items.
Erwood said, “There is a false narrative being shared in the media right now that holding and buying increased inventory will allow businesses to meet high demand over the holidays. This is a mistake. If demand for a product decreases, deep inventory can become a financial liability and environmental waste. This is especially true for technology, fashion, and perishable products that rapidly lose value and salability over time.”
Be Honest
Research and data at the ERWOOD GROUP predict supply chain imbalances will continue into June 2022, due to inflation, workers shortage, and the impact of the Delta variant around the world—especially in South Asia.
Erwood said, “For this reason, you must be very honest with your customer, even when it hurts.
Plan for Recovery
Companies should think beyond short-term disruption to long-term company survival. Disruption can be seen as an opportunity to thrive and make tough business decisions, like a long-desired reorganization or cutting non-performing products and customers.
Buy Local
It’s no secret supply chain issues have taken a toll on small businesses importing materials. For this reason, San Diego consumers must start buying from local businesses to change how they operate. By relying less on goods and services from outside markets you can boost regional and local economies.
GUEST BOOKING:
Keith Erwood is available for live guest segments. To schedule your interview, please contact, Kristi Angevine, Publicist, ERWOOD GROUP at kangevine@gmail.com
About ERWOOD GROUP
At the Erwood Group, our business is helping your business stay up and running after and ideally during a crisis or disruption. Whether you need help with business continuity planning, crisis, and incident management, or need better disaster recovery options, we’ve got programs and services to make your business more resilient so that you can prepare, prevent and profit even in a disaster. For more information visit erwoodgroup.com