Ongoing Impacts of Covid-19 On Product Availability & Logistics
Covid-19 has been a blessing & and curse for many industries. Whilst some have been decimated by lock downs and other regulations, sectors like Auto Parts (specifically performance) have boomed. Demand has never been higher and millions of enthusiasts world wide are building cars in numbers and to standards never seen before.
This demand (in MANY industries) has put pressure on raw materials, manufacturing and logistics like never seen before. The supply chain that is your order, parts being available, arriving here and the being sent out is STRUGGLING. As it is in almost every retail sector.
This has the following INDUSTRY WIDE implications:
With increase demand comes increased pricing. Raw material prices are up. Shipping those materials is up. Our cost prices on parts is up as is shipping those parts. It's all up. We have made very limited changes to any pricing over the last 12 months but will need to make adjustments soon.
Many brands/manufacturers are not coping and unable to keep up with demand. This means parts may not be available and there could be significant delays before they are ready to ship.
Shipping routes are CLOGGED beyond belief. There are delays with getting freight on ships and the movement of ships and unloading of ships. Less planes are flying so air freight is sometimes held up at random. There is no pattern and we see some air freight get here within 2/3 days - or sometimes 2/3 weeks.
Local couriers are struggling with huge volume. Deliveries are taking longer. Packages are going missing. Their networks are being hammered with demand.
Human Resource - MOST IMPORTANTLY
EVERYONE is stressed and running at their limit. Businesses are not only struggling with supply and keeping up with demand but also the admin, customer services and other increases in work required to deal with the messiness of these Covid times.
So Where To From Here
We (Speed Science) are at a point where THINGS ARE WHAT THEY ARE. We are completely at the mercy of all of the above factors. There is no forcing the issue, there is no making things appear that don't exist. Yelling & screaming will not help. We will no longer make apologies for things outside of our control.
The sooner that is realised both in the Performance Parts industry but also in many others, the more relaxed and calm everyone will be. There is no short term solution or light on the horizon. Settle in the long haul.
Be Patient. Practice Grace. Enjoy Summer