How Companies Are Adapting To The Supply Chain Crisis

The supply chain crisis is becoming more and more noticeable with grocery store shelves empty and shipping prices and times skyrocketing. With the holidays around the corner, this begs the question “When is this going to end?”. Jeremy Nixon, CEO of Ocean Network Express said “If we get a bad jam up in July, August, and September of 2022 in North America that could well last late into 2022 and early 2023”. It’s safe to say that the supply chain crisis is harming a multitude of different industries, forcing companies to make huge investments in order to keep food in grocery stores and products readily available.

The root cause of the supply chain issues we’re seeing is the pandemic. Mandatory quarantine times for freighters, labor shortages, warehouses at max capacity, and energy restrictions are just a few of the issues causing the crisis.  But what are businesses doing to adapt to these changes?

In the restaurant space, WingStop comes to mind when you think about adapting to supply shortages. Recently they’ve temporarily rebranded themselves as Thighstop because their supply of wings was running low. While this is a very niche way to accomplish surviving a supply shortage, it proved to be fruitful as Thigh Stop contributed heavily to Wingstop’s $1.5 billion in digital sales.

Warehousing companies are being challenged by the crisis too and are nearing maximum capacity with 3.5% of space available. This is causing them to buy commercial property and begin building new spaces. Some people in the industry are hopefully touting that the holiday season should help normalize available space because products should be leaving warehouses and hitting stores soon.

Those are just a couple of the ways we’ve seen supply chain issues being eliminated. As the shortage is sure to continue, we look forward to seeing what’s next and watching other industries adapt.

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