Product Bottlenecks And Delays Are Being Warned About By Nike.
Key Sentence:
- US sportswear giant Nike and US sports giant Costco face bottlenecks and product delays due to problems with their global supply chains.
Nike said shoe production and shipments Product Bottlenecks would be affected next spring as the company grapples with shipping issues and labor shortages in Asia. Meanwhile, Costco has again imposed restrictions on items such as toilet paper.
Given the concerns about Covid, customers Product Bottlenecks were stockpiling back but also struggling to get items delivered to their stores. On Thursday, Nike announced that it had reduced its sales outlook for the year due to the ongoing lull. “We assume that all geographic areas are affected by these factors.”
Record cargo ship delays in California ports.
In Vietnam alone, the company will spend ten weeks of production time this year. Ship products from Asia to North America have now doubled from about 40 to 80 days. Nike also saw increased transit times in North America, Europe. The Middle East, and Africa due to “congestion at ports and rail and labor shortages.”
Including toilet paper, bottled water, and some cleaning products. This is partly due to the rise of panic buying, but also challenging to find trucks, drivers. And shipping containers to deliver goods to its stores. The retailer has even chartered three of its vessels to transport products between Asia and North America in the next year.
“Factors that put pressure on the supply chain and inflation include port delays, container shortages. Covid failures, congestion in various components. Raw materials and materials, pressure on labor costs, and shortages of trucks and drivers,” he said. Costco CFO Richard Galanti.
“Different major brands require longer waiting times and, in some cases.
Difficulty finding drivers and trucks in a short period. Since the reopening of economies, retailers worldwide have faced widespread disruption in the face of rising import demand. In the United States, this has led to a shortage of toys, wood, new clothes, and pet food while increasing consumer prices.
Brands, including toymaker Hasbro and sporting goods giant Adidas, warned of possible delivery problems during the critical Christmas season. And last week, a record 73 ships had to stop at two major US ports, Long Beach and Los Angeles, as dockworkers tried to fill the void. It used to be unusual for more than one person to wait for a bed.