Eli5: how have supply chains not recovered over the last two years?

Question

I understand how they got delayed initially, but what factors have prevented things from rebounding? For instance, I work in the medical field an am being told some product is “backordered” multiple times a week. Besides inventing a time machine, what concrete things are preventing a return to 2019 supplys?

In: 93

Answer 1

For my industry, the demand for our products didn’t stop, the orders just kept coming. So while manufacturers fell behind on delivering to us, our need never slowed down. The result was that we currently have a compounded backlog of orders that are still unfulfilled.

Let’s say you’re used to feeding your puppy three dog treats every day. Suddenly, you can only get one dog treat a day. But he still demands three a day, and you order three a day, with the missing two on backorder.

Fast forward to the end of a week where you’ve only been able to get seven treats but your puppy has demanded 21 treats. You’re behind by 14 treats *that are still owed to the puppy.*

Now, your treat supplier is back up to supplying three treats a day, which matches your need but doesn’t address your missing treats. Furthermore, inflation has caused the treats to go up in price.

So now the supplier is stuck making treats at a loss because the orders were placed before inflation, **or** they can focus on new orders first to offset the cost of the old cheaper orders. Once there’s some profit, then they can buy ingredients to make the cheaper treats. (The same treats, just not as profitable.)

You have no control over this and your puppy is *pissed* at having to wait for his treats. He writes terrible online reviews and complains to the BBB (better barking bureau) about how you’re in breach of contract and refuses to pay for any of the treats you’ve already given him because they were late and demands extra ~~compensation~~ pets for pain and suffering.

It doesn’t help that the neighbor puppy, who just started buying treats, get them on time because the treat supplier is struggling and gives new customers preferential treatment.

*(None of this goes into the loss of headcount at the treat making company, who went through something similar with the companies that provide *them* with ingredients.)*

*Edit: Thanks for the awards! You guys, gals, n pals rock!*