The holiday season is here once more! With retailers encouraging consumers to get a jump start on their holiday shopping, material handling companies must be ready to follow suit and provide the supply chain support that these retailers need.
While in years past, October seemed early to be Christmas shopping, it was the suggested norm for 2021. Unfortunately, there are already hints of panic and fear with the expectation of stock shortages for virtually all products. As we look ahead to the holiday season, these are three key trends we can expect.
Have you been hearing Christmas bells? If you’ve seen a recent advertisement, then the answer is likely yes!
Last year, the panic of COVID-19 led companies to begin marketing their holiday specials in October. This year, research shows that most businesses started their holiday marketing campaigns in early September. Retailers hope that customers ordering presents early will mitigate the chances of long delays for deliveries in the run-up to Christmas. While this idea is good in theory, it neglects one fact: the material handling sector is still recovering from the impact COVID-19 is having on the industry, and as a result, the economy.
In addition to heightened demand, material handling companies are having to work more quickly than ever. Due to high levels of disruption in the sector, businesses will also have to handle issues with rising prices. With more pressure to deliver products within a shorter window, retailers need to invest in the quality of their products and the safety and productivity of their material handling employees working on the supply chain.
While encouraging an early start may have curved some demand, pressures on the supply chain are expected to be just as severe as 20201,2,3. Major companies have already noted concerns about supply chain costs and potential bottlenecks that could leave businesses short on products in high demand. With longer leader times, companies that haven’t adapted run the risk of products being stuck at other points along the supply line.
Ultimately the 2021 holiday season could be difficult for all businesses. But, at HAWKER®, we are committed to ensuring that supply chains remain flexible and reliable. If you would like to learn more about our power solutions, contact us today.
1. Nader Mikhail, “Dealing With Large-Scale Supply Chain Disruptions in 2021,” Supply Chain 24|7, https://www.supplychain247.com/article/dealing_with_large_scale_supply_chain_disruptions
2. Holly Ellyat, “Supply chain chaos is already hitting global growth. And it’s about to get worse,” CNBC, https://www.cnbc.com/2021/10/18/supply-chain-chaos-is-hitting-global-growth-and-could-get-worse.html
3. Garth Friesen, “No End In Sight For The COVID-Led Global Supply Chain Disruption,” Forbes,
https://www.forbes.com/sites/garthfriesen/2021/09/03/no-end-in-sight-for-the-covid-led-global-supply-chain-disruption/
