Discussion in 'YouTube Digest' started by ozcopper, Mar 13, 2020.
That certainly gives one pause. I have been noticing shipping rates falling and knew we would be in for a shock. Ouch. Time to double my stocking levels
My advise to clients is that if you deem any product to be business critical, go and find some extra stock...now.
Shipping dates from China extended another 30 days, it will be the middle of May (at best) before we see containers being unloaded and June before they hit the shelves.
These is very little imported product left because we have been living in a "just in time" world.
I'm currently working for an agriculture/food-manufacturing company that produces and packs half a dozen related lines of self-branded product for one of the big-2 supermarket chains in Australia, supplying every outlet in the country via their distribution centres. Typically, we supply around 750 tonnes per week in 1kg, 2kg and 3kg retail packets, and stock around 3 weeks supply in our warehouse. Due to the current frenzy in supermarkets, last week we were hit with the equivalent of one month's worth of orders for delivery in that week, which depleted all stocks instantly. This week, the buyer was still desperate for more stock for their shelves, but we could only supply as much as we could produce running the factory 24/7 - no chance of keeping up with current demand, and still most despatches leaving only partially fulfilled.
Do you think it will be a similar situation as toilet paper? Demand for toilet paper is reasonably fixed so a surge in demand now will mean a proportionate decrease some time in the future.
That is the assumption at the moment... but who knows?
trucks drivers on MCs after party???
self quaranteen 14 to 21 days....ouch
never know what kind of supply interruptions would that be
Plastic packaging may reach critical supply levels as well. Prior to this outbreak China had stopped all importation of used plastics destined for recycling and whilst much of that probably wasn't destined for food packaging (you could only assume and hope) I was expecting a supply chain disruption. The only saviour may well be the collapse of oil prices as China had made it clear that they would only accept virgin plastics in the form of new pellets to manufacture containers. This could impact the take-away food industry in the coming months.
Good time to have offloaded our business, bad time to be looking for some sort of alternative employment.
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