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Despite the shortage of some products due to delays in delivery times, according to Spanish stores and supermarkets, there is no such thing as a scarcity, which leads to empty shelves. In addition, fierce competition means that there are more than enough goods available to replace products that are temporarily unavailable. Spanish entrepreneurs have been preparing for months and say they are ready for the huge influx of customers and online orders they expect in the coming weeks around Black Friday, Internet Monday and in the run-up to Christmas.
Should I do my Christmas shopping early?
People who have specific desires and already know the products they need are advised to be there on time. Supply problems will mainly affect the replenishment of the most common products. This doesn’t mean you should rush to the store now for Christmas shopping. Toy store managers note that some customers are hoarding all their gifts to avoid leaving them empty-handed. There is absolutely no reason for this, because despite the somewhat longer delivery times, the gaming sector does not expect to face any real shortages.
What is the government’s responsibility?
Delivery delays are a global problem. And the fact that installing a simple washing machine, for example, requires spare parts from more than a dozen countries, only increases the risk of problems and delays. “The slowest link determines the speed of delivery,” Fernando Gil, president of the Spanish Association of White Goods ANFEL, told El País newspaper. This basically means that if only one part is missing, the product cannot be marketed. The government’s role is secondary in this matter. However, measures can be taken as in the United States, where ports and distribution companies have to work day and night to improve the situation.
What is the reason for the deficiency?
Due to global closures and measures in the wake of the coronavirus outbreak, factory work has been closed for extended periods of time. As a result, production stagnates. When the measures were relaxed, hundreds of millions of people spent the money saved during the lockdown on merchandise, mostly things to renovate the home and create a workplace at home. However, when the factory stops working, the production process does not immediately return to the old level after it resumes. In addition, Asian factories suffered from staff shortages and power outages.
congestion in the port
Moreover, the ports became clogged with stranded containers due to the shortage of truck drivers. As a result, empty containers cannot be returned to their usual place to be filled with new goods, which leads to further delays. In some ports there is no space at all and long queues of ships form that must wait more than a week before being unloaded. Because of all this, there is a shortage of containers to get products from Asia, which has led to the container prices being skyrocketed. Production chains were seriously disrupted by this delay.
Will the economic recovery take longer?
Large companies are already factoring in revenue lost due to supply chain issues in their budgets and forecasts. Apple, for example, claims to have lost $6 billion in revenue due to the current crisis. However, companies’ period numbers now show a solid improvement over the weak pandemic year, although part of the economic recovery may be delayed to 2022. The supply crunch is expected to be over by then.
