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?
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In addition to the other issues people have pointed out theres a major amount of fuckery that has been happening in delivery/downstream transport and logistics, specifically the US trucking industry.
The truckers got caught in that all too familiar spot between governmental over regulation and absurd corporate greed… truckers being the small man in the equation wore the brunt of that burden, many are failing despite working harder than ever.
Shipping been mentioned a lot. So I’ll skip that one.
Companies are very lean. Ie most get and ship the same amount of items the same day so no storage.
So, expand this to the whole industry and it takes a long time to build back up. Take something like an Xbox.
Lots of chips and plastic. Chips and plastic come from oil and silicon. Oil and silicon come from mining. Mining requires equipment that requires an entire mining industry(which requires its own supply chain)… ect… so you need the industry that makes the mining equipment back online(and all the services that support mining) then you need all the raw material to come in, then you need all the chip and plastic industries back, then you need all the assembly plants back, then you need all supporting industries in place, then you can make one and put it on a shelf.
Over simplified and an Xbox might not be the best example but you get the point. Products that seem readily available might take a year plus to go from raw material to the product. When all these sub suppliers shut down it takes time to get back to the point where you pushing them out to keep up with demand.
Expand to cars or more complex things and it takes a lot! To get to the point where you just pumping out a sedan every 45seconds
Edit: not sure what you do in medical I was assuming things like devices that’s why I used a device example. If it’s medicine I’m not sure but assume it’s similar.
Shipping been mentioned a lot. So I’ll skip that one.
Companies are very lean. Ie most get and ship the same amount of items the same day so no storage.
So, expand this to the whole industry and it takes a long time to build back up. Take something like an Xbox.
Lots of chips and plastic. Chips and plastic come from oil and silicon. Oil and silicon come from mining. Mining requires equipment that requires an entire mining industry(which requires its own supply chain)… ect… so you need the industry that makes the mining equipment back online(and all the services that support mining) then you need all the raw material to come in, then you need all the chip and plastic industries back, then you need all the assembly plants back, then you need all supporting industries in place, then you can make one and put it on a shelf.
Over simplified and an Xbox might not be the best example but you get the point. Products that seem readily available might take a year plus to go from raw material to the product. When all these sub suppliers shut down it takes time to get back to the point where you pushing them out to keep up with demand.
Expand to cars or more complex things and it takes a lot! To get to the point where you just pumping out a sedan every 45seconds
Edit: not sure what you do in medical I was assuming things like devices that’s why I used a device example. If it’s medicine I’m not sure but assume it’s similar.
Shipping been mentioned a lot. So I’ll skip that one.
Companies are very lean. Ie most get and ship the same amount of items the same day so no storage.
So, expand this to the whole industry and it takes a long time to build back up. Take something like an Xbox.
Lots of chips and plastic. Chips and plastic come from oil and silicon. Oil and silicon come from mining. Mining requires equipment that requires an entire mining industry(which requires its own supply chain)… ect… so you need the industry that makes the mining equipment back online(and all the services that support mining) then you need all the raw material to come in, then you need all the chip and plastic industries back, then you need all the assembly plants back, then you need all supporting industries in place, then you can make one and put it on a shelf.
Over simplified and an Xbox might not be the best example but you get the point. Products that seem readily available might take a year plus to go from raw material to the product. When all these sub suppliers shut down it takes time to get back to the point where you pushing them out to keep up with demand.
Expand to cars or more complex things and it takes a lot! To get to the point where you just pumping out a sedan every 45seconds
Edit: not sure what you do in medical I was assuming things like devices that’s why I used a device example. If it’s medicine I’m not sure but assume it’s similar.
I work in the medical supply chain field and while it has gotten a lot better the past 6 months there is still a lot of catching up to do.
There still delays in every section of supply chain from raw goods shortages, manufacturing, ship freights, truck shipping, warehouse storage.
Some of it due to worker shortage/high turnover , catching up on older orders e.g. I’m just now receiving orders placed 6 months even a year ago sometimes.Aslo keep in mind hospital products all have expiration dates due to sterilization and usually any changes in a product have to go through an approval process.
I Also don’t think people realize how much product a hospital uses on a daily basis and limited amount of staff that is ordering and monitoring all that usage. The hospital I work at receives no less then 50 pallets a week just for medical supplies.
There are plenty of companies in the supply chain that didn’t survive the pandemic, and folded completely. Leaving everyone else to pick up their work as well as their already established contracts.
Passenger transport has had the same issues. I run a bus company that does school work mostly. Excursions, sports, camps, etc.
Other companies lost drivers to health concerns over the pandemic, retirement, or younger staff needing full time work to support their families, while there was no work for schools or groups during the lockdowns and the year following.
This caused some companies to close completely, and most of the rest left standing, to have a shortage of drivers. A few might have come back once work got going again – especially the older drivers nearing retirement, but those who needed financial stability didn’t return.
In my case, I had enough work to keep one full-timer and one casual employed throughout the pandemic – from a total workforce of 6. I went from 13 operating vehicles, to 5. I cannot get new drivers. I put one guy on, who did two shifts, and changed his mind.
I am constantly turning down jobs because we are already fully booked, and I have to look after my regular customers first. I’ve had calls from schools with kids waiting on the side of the road for a bus they booked with another company weeks ago, who have either failed to turn up, or called and told them they couldn’t do the job anymore.
It’s the same for the freight companies. The same, if not more, work to be done, and not enough resources to go around.
There are plenty of companies in the supply chain that didn’t survive the pandemic, and folded completely. Leaving everyone else to pick up their work as well as their already established contracts.
Passenger transport has had the same issues. I run a bus company that does school work mostly. Excursions, sports, camps, etc.
Other companies lost drivers to health concerns over the pandemic, retirement, or younger staff needing full time work to support their families, while there was no work for schools or groups during the lockdowns and the year following.
This caused some companies to close completely, and most of the rest left standing, to have a shortage of drivers. A few might have come back once work got going again – especially the older drivers nearing retirement, but those who needed financial stability didn’t return.
In my case, I had enough work to keep one full-timer and one casual employed throughout the pandemic – from a total workforce of 6. I went from 13 operating vehicles, to 5. I cannot get new drivers. I put one guy on, who did two shifts, and changed his mind.
I am constantly turning down jobs because we are already fully booked, and I have to look after my regular customers first. I’ve had calls from schools with kids waiting on the side of the road for a bus they booked with another company weeks ago, who have either failed to turn up, or called and told them they couldn’t do the job anymore.
It’s the same for the freight companies. The same, if not more, work to be done, and not enough resources to go around.
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!*
I work in the medical supply chain field and while it has gotten a lot better the past 6 months there is still a lot of catching up to do.
There still delays in every section of supply chain from raw goods shortages, manufacturing, ship freights, truck shipping, warehouse storage.
Some of it due to worker shortage/high turnover , catching up on older orders e.g. I’m just now receiving orders placed 6 months even a year ago sometimes.Aslo keep in mind hospital products all have expiration dates due to sterilization and usually any changes in a product have to go through an approval process.
I Also don’t think people realize how much product a hospital uses on a daily basis and limited amount of staff that is ordering and monitoring all that usage. The hospital I work at receives no less then 50 pallets a week just for medical supplies.
I work in the medical supply chain field and while it has gotten a lot better the past 6 months there is still a lot of catching up to do.
There still delays in every section of supply chain from raw goods shortages, manufacturing, ship freights, truck shipping, warehouse storage.
Some of it due to worker shortage/high turnover , catching up on older orders e.g. I’m just now receiving orders placed 6 months even a year ago sometimes.Aslo keep in mind hospital products all have expiration dates due to sterilization and usually any changes in a product have to go through an approval process.
I Also don’t think people realize how much product a hospital uses on a daily basis and limited amount of staff that is ordering and monitoring all that usage. The hospital I work at receives no less then 50 pallets a week just for medical supplies.
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